FMCG
FMCG - Snacks
from 1,160 today
PSL is expected to deliver strong financial performance, with revenue growth driven by growth in the namkeen segment, followed by extruded snacks and potato chips, while margin improvement will be driven by a shift in the distribution model, plant consolidation, a shift to owned plants, and expansion in East India. We reiterate our BUY rating with a DCF-based TP of INR1,350.
Prataap Snacks delivered robust revenue growth in 1QFY27, driven by the namkeen and potato chips portfolio, although margins contracted due to higher raw material and palm oil costs. We expect margins to expand to ~7-8% by FY28, led by cost optimization, calibrated price hikes, and a shift in the distribution model, prompting us to reiterate our BUY rating with a DCF-based TP of INR1,350.
Prataap Snacks reported 1QFY27 revenues above estimates on good growth recovery, but margin recovery remains a work-in-progress due to elevated input-cost inflation. We maintain a HOLD rating with a revised target price of Rs 1,030, valuing the stock on a P/E of 40x.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
