Time period given by analyst is one year when Dodla Dairy Ltd. price can reach defined target.
Dodla Dairy Ltd., incorporated in the year 1995, is a Small Cap company (having a market cap of Rs 3572.84 Crore) operating in FMCG sector.
Dodla Dairy Ltd. key Products/Revenue Segments include Food Products, Sale of services and Scrap for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 514.65 Crore, down -3.50 % from last quarter Total Income of Rs 533.34 Crore and unchanged .00 % from last year same quarter Total Income of Rs Crore. Company reported net profit after tax of Rs 36.07 Crore in latest quarter.
Investment Rationale
The brokerage models revenue and PAT CAGRs of 14.2% and 17.6%, respectively, over FY21-FY23E. We forecast RoE to be upwards of 17% in FY23E. The brokerage initiates coverage on the stock with a BUY rating and DCF-based target price of Rs700 (24x FY23E). Key risks: Delay in distribution and procurement expansion, and failure of some of the new products and potentially higher competitive intensity in South India.
Promoter/FII Holdings
Promoters held 62.5 per cent stake in the company as of June 30, 2021, while FIIs held 9.4 per cent, DIIs 9.3 per cent and public and others 18.8 per cent.
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