Dodla Dairy Q1 Review - Lower Margins But Likely Market Share Gains; DCF Accretive Strategy: ICICI Securities

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 40% YoY led by strong 20.3% growth in milk procurement and 51% higher revenues from value added product. While the company’s Ebitda margin was lower by 367 basis points, we believe it has gained market shares in its core regions. In our view market share gains are more discounted cash flow accretive than losing margins in one-two quarters. We also note the company has increased the prices in June 2022 and plans to raise prices again in Q2 FY23. We model the margins to improve in H2 FY23 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 anddistribution 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:.DISCLAIMERThis 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.

Dodla Dairy Q1 Review - Lower Margins But Likely Market Share Gains; DCF Accretive Strategy: ICICI Securities

Dodla Dairy Q1 Review - Lower Margins But Likely Market Share Gains; DCF Accretive Strategy: ICICI Securities

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