Shares of this small-cap company, engaged in milk processing and production of dairy products, rose over 2.3 percent after acquiring 35.23 acres of land in Maharashtra to set up a new plant.
Share price variations:
With a market capitalization of Rs. 7,748.50 crores, Dodla Dairy Ltd. rose to an intraday high of Rs. 1,320.75 representing a 2.29 percent increase from its previous closing price of Rs. 1,291.15 per share.
Reason for the Rise:
According to exchange filings, Dodla Dairy Ltd. acquired 35.23 acres of land in Itkal Village, Dharashiv District, Maharashtra, to set up an integrated plant serving the Solapur district. Currently, the company procures 2 lakh liters of milk per day from Maharashtra, which is processed at its plants in Telangana and Andhra Pradesh.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 85.9 percent to Rs. 65.02 crores compared to Rs. 34.97 crores in Q1FY24, while revenue from operations also marked an increase of 10.7 percent to Rs. 911.6 crores from Rs. 823.43 crores in comparison to the same period.
In FY24 the company has an ROE of 15.80 percent and an ROCE of 22.29 percent. The company’s shares have delivered a 40 percent return over the past six months and 91 percent in the past year.
Product Portfolio:
The company’s product portfolio includes milk, curd, and other value-added products. In Q1 FY25, it sold an average of 11.3 lakh liters of milk and 467.4 metric tonnes of curd per day. Value-added products contributed Rs. 313.9 crores, accounting for 35.4% of the quarter’s revenue.
The company also runs a subsidiary by the name Orgafeed, which is primarily engaged in the business of seed crushers, manufacturing and dealing of groundnuts, gingerly, and cotton, and the manufacturing of cattle feed.
About the company:
Incorporated in 1995, Dodla Dairy is in the business of processing/ production of milk and production of milk products in the Indian and African markets. The company offers a wide range of Milk Products Comprising Fresh Milk, Butter, Ghee, Paneer, Curd, Flavoured Milk, Doodh Peda, Ice Cream Skimmed Milk Powder, and other dairy products.
In India, the company operates 14 processing plants and 152 chilling centers, with approximately 97.6 percent of the milk directly sourced from farmers. It has 40 sales offices and 598 Dodla retail outlets, supported by a distribution network of 1,750 product distributors and over 2,500 agents across 13 states.
Internationally, the company has a presence in Kenya and Uganda, with 2 processing plants and 338 distributors, contributing about 9.2 percent of its total revenue.
Written By Joseph Pv
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