Shares of Dodla dairy extended its gains and surged about 19 per cent during the trading session on Monday after the company reported a strong quarterly performance in the June 2023 quarter. The latest rise in the diary counter has turned the stock into a multibagger in just four months.
Dodla Dairy reported a 41 per cent rise in the net profit on a year-on-year (YoY) basis to Rs 35 crore, with its PAT margins expanding by 77 basis points (bps) on a yearly basis 4.2 per cent for the quarter ended on June 30, 2023, the company said in an exchange filing on Friday.
The dairy products player reported a 15 per cent rise in to Rs 823.4 crore in the Q1FY24, which was Rs 717 crore in the year-ago period. The company’s revenue topped Rs 800 crore mark for the first time, said the company. EBITDA grew by 34 per cent YoY to Rs 60.3 crore in Q1 FY24, with EBITDA margin expanded 104 bps YoY to 7.3 per cent.
Shares of Dodla Dairy surged about 19 per cent to Rs 908.40 on Monday, hitting its new 52-week high, before giving its gains partially and commanding a total market capitalization of more than Rs 5,250 crore. The scrip had settled at Rs 766.45. The stock has surged more than 45 per cent in the last three sessions.
Shares of Dodla Dairy are bragging a multibagger status as the stock has surged about 120 per cent in a little more than four months from its 52-week lows at Rs 417 on March 13, 2023. The stock has gained about 90 per cent in the last three months, while it is up over 50 per cent in a month.
Shares of Dodla Dairy were listed at the bourses in June 2021, when the company raised over Rs 520 crore by selling its shares in the range of Rs 421-428 apeice. The stock has more than doubled from its IPO price in more than two years.
Dodla Dairy is one of India’s leading integrated dairy companies incorporated in 1995. The company procures, processes, and sells milk and milk products. The Company’s product portfolio consists of milk, buttermilk, ghee, curd, paneer, flavoured milk, doodh peda, lassi, ice-cream and milk-based sweets.
The company’s procurement is centred in 5 states and products are available for purchase in 13 states and has 123 milk chilling centres or plants. Its centres are spread across the states of Andhra Pradesh, Telangana, Tamil Nadu and Karnataka. The Company also has international operations in Uganda and Kenya.
In view of the structural changes taking place in the industry, along with the headstrong approach the company employs to expand its presence into untapped markets, we believe that Dodla is well poised to grow ahead of the industry to cement itself as a market leader in the years to come, said Arihant Capital Markets, while initiating coverage on the stock.
The company does not shy away from organic and inorganic expansions as is seen with its track record of continuously investing across the value chain. Despite this, it manages to maintain a healthy balance sheet with a net debt zero status, it added with a buy rating on the stock and a target price of Rs 1,366, suggesting a upside of Rs about 80 per cent from its previous close.
