Milky Mist share price extends post-listing gains, hits 10% upper circuit

Newly listed Milky Mist shares extended their rally on Wednesday following a solid Dalal Street debut a day ago, as investor interest in the counter remained strong. Milky Mist shares hit the 10 per cent upper price band at Rs 199.55 on the BSE, defying the weakness in the Indian stock market. BSE Sensex, meanwhile, was down 0.23 per cent at 77,065. 

 

The stock had listed on Tuesday at ₹165, a 17.86 per cent premium over the issue price before building gains to hit the 10 per cent upper circuit limit. It settled the session at ₹181.45, nearly a 30 per cent premium over its issue price of ₹140. READ MORE

 

Considering today's peak, Milky Mist trades 42.5 per cent above its issue price.

 

How should investors trade Milky Mist shares?

Analysts believe Milky Mist IPO shares offer long-term value given its strong market position and a robust industry outlook. 

 

Milk and value-added dairy products (VADP) constitute the largest segment of India's packaged food market at 76 per cent of the industry in FY26. While the milk market is expected to grow at 7 per cent CAGR during FY26-31, the VADP segment is seen rising at a CAGR of 12.4 per cent.

 

Milky Mist was the largest private packaged paneer brand in India, with an approximately 19 per cent market share by value in FY26. It was also the largest private packaged cheese brand in South India, with an approximately 12 per cent market share, and held an approximately 7 per cent market share in organised curd in South India and was among the top two private packaged yogurt brands in India.

 

Against this backdrop, Vinit Bolinjkar, head of research at Ventura, said that he would continue to hold Milky Mist, primarily because of the value-added opportunities in the dairy segment. "There are very few good businesses in this space, and Milky Mist is still one of them," he noted.  Parag Milk Foods, Hatsun Agro Product, and Dodla Dairy are other listed peers.

 

On the other hand, Mahesh Ojha, vice president - research & business development, Kantilal Chhaganlal Securities, said that given the sharp rise in the stock, he would recommend booking profit in the near term, while long-term investors with a 3-5 year horizon can still hold. He added that there is a limited free float in the market for Milky Mist shares as volumes remain high and anchor lock-in is in place. He recommended a stop loss of Rs 180 on Milky Mist and a target price of Rs 220. 

 

Milky Mist IPO details 

The ₹1,553-crore IPO of Milky Mist was subscribed 56.12 times. The company attracted bids for 4,59,04,22,836 shares against 8,17,98,244 shares on offer, as per details available with the NSE.

 

The category for Qualified Institutional Buyers (QIBs) was subscribed 155.83 times. The non-institutional investors booked their segment 34.91 times, while the retail portion was subscribed 8.41 times.

 

Milky Mist IPO was a combination of a fresh issue of shares worth up to ₹1,428 crore and an offer for sale (OFS) of up to ₹125 crore. Proceeds will be used for repayment of borrowings and strengthening its cold-chain infrastructure. 

 

The price band for the offer was set at ₹133-140 per share.

 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.