BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Dodla Dairy Ltd.’s revenues increased 22.8% YoY compared to Hatsun Agro Products Ltd. (6.9%) and Heritage Food India Ltd. (21.8%) led by strong 11.7% growth in milk procurement and 19.7% higher revenues from added product. While the company’s Ebitda margin was lower by 245 basis points (short term impact), we believe it has gained market shares in its core regions which is discounted cash flow accretive.
We also note Dodla Dairy has taken multiple pricing hikes in H1 FY23. We model the margin to improve in FY24 led by price hikes, cost saving initiatives and operating leverage.
We model Dodla to report profit after tax compound annual growth rate of 17.6% over FY22- 24E with:
high single-digit growth in milk procurement and market share gains and
distribution expansion.
We remain positive on Dodla due to its competitive advantages and strong growth opportunity in South India.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR