A leading Indian dairy products manufacturer, renowned for its extensive portfolio of milk-based offerings and protein concentrates, is making headlines in the financial sector. The latest development involves a significant pledge release of shares by its promoters, indicating a notable shift in the company’s shareholding structure and potentially impacting its market dynamics.
Share Price Movement
The share price of Modern Dairies Limited hit an intraday high of 5.9 percent to Rs. 64.45 per share on Wednesday, an increase from its previous close of Rs. 60.86 per share. The market capitalisation now stands at approximately Rs. 146 crore as of January 15, 2025.
What driving price?
Modern Dairies Ltd. has decided to release 1.65 crore pledged shares held by its promoters, which is 45.7% of the company’s total share capital. This move, announced on January 14, 2025, signals the promoters’ confidence in the company’s financial health and future prospects.
Financial Highlights
According to its recent filing, in the year ending March 2024, the company reported significant growth in FY2024, with revenue increasing by 67% to Rs. 362 crore from Rs. 217 crore in FY2023. Profits also surged by 183% to Rs. 34 crore in FY2024, compared to Rs. 12 crore in FY2023.
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Competitors
Modern Dairies competes with major multinational corporations such as Hindustan Unilever and Nestle, alongside regional players like Hatsun Agro and Heritage Foods.
Market Outlook
The Indian food processing and FMCG sectors show robust growth, with the food market projected to reach $547.3 billion by 2028, driven by a 9.5% CAGR. Digital advertising and the dairy sector also show strong expansion. Opportunities abound with government-backed agro-processing clusters and e-commerce enabling cost-effective marketing.
The Union Budget 2023-24 supports growth via PLI schemes, rural infrastructure, and increased disposable incomes. Investments like Varun Beverages $421.69 million plan and ITC’s acquisition strategy further fuel this promising industry’s outlook.
Written By Fazal Ul Vahab C H
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