Dairy companies' shares jump on growth optimism

The jump in share prices was on expectations of strong growth over the past few years because of their diversification

Share prices of dairy companies saw huge gains on Monday after manufacturers shifted focus to the value-added segment to improve profitability.

Prabhat Dairy, which announced its Vision 2020 with nearly 40 per cent compound annual growth rate (CAGR) from the business-to-consumer (B2C) segment in three years, led the growth in its share price. The company’s stock jumped 20 per cent to close at Rs 210.7. The stock of Parag Milk Foods and Kwality also moved up 9.8 per cent and nine per cent to close at Rs 268.4 apiece and Rs 110.8, respectively.

The jump in share prices was on