The shares of one of the leading dairy firm in India gained 2.5% to ₹1,046.30 per share on wednesday a day after FII bought a fresh stake in the company via the bulk deal.
At 10:35 a.m., On Wednesday, Dodla Dairy Ltd shares were quoted at ₹1,043.45 per share, up 2.22 percent from the previous close price on the exchange. The company has a market capitalization of ₹6,207 crores.
What’s the matter: According to the NSE block deal on June 25, Pinebridge Inv Asia Limited A/C Pb Global Funds-Pinebridge India Eq Fund, a Foreign Institutional Investor (FII), bought 825,000 equity shares in the company at an average price of ₹1,000. Meanwhile, Mylktree Consultants LLP sold shares at the same price through a bulk deal.
About company: Dodla Dairy Limited, based in Telangana, is an integrated dairy company. It generates most of its revenue from selling milk and dairy-based value-added products in the branded consumer market. Dodla Dairy is the third-largest player in milk procurement in South India and has a significant market presence across 12 states in India. The company operates 16 processing plants.
Financials: Dodla Dairy’s revenue increased by 9 percent year-on-year, from ₹724 crore in Q4FY23 to ₹787 crore in Q4FY24. During the same period, net profit rose by 104 percent, from ₹23 crore to ₹47 crore.
Dodla Dairy Ltd shares have gained 22% in the last six months and 79% in the last 12 months.
In Q4FY24, the company commenced commercial production at its new dairy plant in Kenya, which has a capacity of 100,000 liters per day. Dodla operates in Kenya and Uganda through its subsidiaries Lakeside Dairy Limited, Dodla Dairy Kenya Limited, and Country Delight Dairy Limited, Uganda.
The company’s revenue from value-added products (VAP) and fat & fat products increased by 143 basis points year-on-year to 28.3% of total revenues in FY24. Sales of Dodla Dairy’s value-added products grew by 16.3% year-on-year to ₹740 crore in FY24.
Shareholding pattern: As of March, the company’s shareholding pattern shows that the promoters hold a 62.21% stake, FIIs hold an 11.36% stake, and DIIs hold a 17.62% stake.
Written by Omkar Chitnis
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