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Parag Milk soars 15%; hits 52-week high after pvt fund buys stake

Sixth Sense India Opportunities III acquired over 200,000 shares of the company via the open market.

Parag Milk gains on securing PLI nod for Category 1 of mozzarella cheese

SI Reporter Mumbai
Shares of Parag Milk Foods (PMFL) hit a 52-week high of Rs 138.80, as they surged 15 per cent on the BSE in Monday’s intra-day trade on the back of heavy volumes. The stock surpassed its previous high of Rs 131.75, touched on September 15, 2022.

In the past two trading days, the stock of the dairy products company has zoomed 22 per cent after Sixth Sense India Opportunities III acquired over 200,000 shares of the company via the open market.

According to disclosure made by PMFL, Sixth Sense India Opportunities III has purchased 251,718 shares representing 0.21 per cent stake of the company via open market. The names of the sellers are not disclosed by the company. CLICK HERE FOR FULL DETAILS

At 03:10 PM; PMFL quoted 14 per cent higher at Rs 137.10, as compared to 0.04 per cent rise in the S&P BSE Sensex. The average trading volume at the counter more-than-doubled today. A combined 16.5 million shares changed hands on the counter on the NSE and BSE.

PMFL has three milk processing plants—one each at Manchar (Maharashtra), Palamner (Andhra Pradesh) and Sonipat (Haryana). The company is present across the supply chain of procurement, processing and marketing of liquid milk and milk products under its brands, Gowardhan, Go, Pride of Cows, Avvatar, Slurp and Topp Up. The dairy products manufactured and marketed by the company include clarified butter, cheese, butter, SMP, curd, whey powder, yoghurt, UHT milk, flavoured milk and traditional dessert mixes.

The rating agency ICRA on May 10 had downgraded the credit rating for the credit facilities availed by the company.

The rating action on PMFL considers its weaker than expected financial performance in FY2023 as marked by modest operating margins and elevated debt levels, leading to moderation in the company’s liquidity profile and debt protection metrics; and ICRA’s expectation that PMFL’s credit metrics are likely to remain moderated in FY2024.

However, the ratings draw comfort from PMFL's sizeable scale of operations, established brand position in the processed cheese and clarified butter (ghee) segment, its expansive distribution network and its diversified product profile with sizeable market share in certain VADP categories. Leveraging on the same, PMFL has reported healthy revenue growth in FY2023.

The company's business profile is characterised by the extensive experience of the promoters in the dairy industry, leading to an established procurement base of dairy farmers, supported by a network of bulk coolers and chilling centres, ensuring a regular supply of raw milk. The company is geographically diversified with a pan India presence through its strong marketing and distribution network, ICRA said in rating rationale.

 

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First Published: Jun 26 2023 | 3:29 PM IST

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