PARAGMILK
7012345678950123456789.2012345678950123456789
-0.30 (-0.40%)
NSE Volume
2.7L+
Broker Reports
HOLD
Parag Milk Foods is anticipated to post strong growth in value added products on the back of its diversified product basket, strong brands and wide distribution network. Further, PMFL would benefit from a shift in mix in favor of the organized market for dairy products. At the current market price, the company trades at a P/E of 7.4x its FY2021E EPS. Thus, we maintain our Hold recommendation on PMFL.
BUY
A robust VADP portfolio, product launches and margin levers underpin our ~14% CAGR in sales over FY19–21 and 60bps expansion in EBTIDA margin to 9.9%. We maintain ‘BUY’ with a TP of INR276 (16x Q3FY21).
BUY
Parag Milk Foods is anticipated to post strong growth in value added products on the back of its diversified product basket, strong brands and wide distribution network. Further, PMFL would benefit from a shift in mix in favor of the organized market for dairy products. At the current market price, the company trades at a P/E of 9.4x its FY2021E EPS. Thus, we maintain our Buy recommendation on PMFL with Target Price of `304.
BUY
Parag has reported high growth by expanding into North & East India while keeping working capital under control. As the company reduces SMP salience and increases liquid milk or VAD salience in FY20E, margin should move up to 10%. We assume an EBITDA margin of 9.9%, up 90bp, led by gross margin expansion and operational leverage. We reiterate Buy with a TP of INR 366 based on 11.5x FY20E EV/EBITDA.
BUY
In the backdrop of increasing milk procurement prices, we are fine tuning our revenue and profitability estimates. We expect Parag to post Revenue CAGR at 22% during FY19-21 compared to 21% earlier. Going forward, aggressive expansion of distribution network & inorganic growth is expected to aid revenue growth (acquisition of Danone India's dairy plant at Sonepat, Haryana in FY'18). EBITDAM is estimated to take a knock of 150 bps to 9.5% for FY'20 as well as FY'21 as company needs to spend aggressively behind advertising and sales promotion to grow its health and nutrition business. EPS is estimated to compound 30% annually during FY'19 -'21 compared to earlier estimated 34%. At CMP of 235, the stock is trading at 10.3x FY'21E EPS. We maintain BUY with a revised target of INR 342(from earlier 453 ) at which stock will trade at 15x FY'21E EPS.
BUY
There is no material change to our EPS estimate for FY20/21. Estimated profit growth (EPS CAGR of 14% over FY19-FY21E) is moderate for PARAG’s size, but the balance sheet improvement is taking place ahead of expectation. There has been a marked improvement on the working capital front, with NWC days down to 68 in FY19 from 72 in FY18. The overall return profile will also likely improve as capex requirement will largely pertain to maintenance over the next two years. We value PARAG at 15x FY21E EPS (at ~65% discount to our consumer staples universe) to arrive at a one-year TP of INR305 (30% upside). Maintain Buy.
BUY
BUY
Parag Milk Foods is anticipated to post strong growth in value added products on the back of its diversified product basket, strong brands and wide distribution network. Further, PMFL would benefit from a shift in mix in favor of the organized market for dairy products. At the current market price, the company trades at a P/E of 11.8x its FY2020E EPS. Thus, we maintain our Buy recommendation on PMFL with Target Price of Rs 359.
BUY
BUY
BUY
NEUTRAL
BUY
BUY
BUY
BUY
BUY
NEUTRAL
BUY
HOLD
BUY
BUY
NEUTRAL
HOLD
About
Parag Milk Foods Ltd.
NSE: PARAGMILK | BSE: 539889 | ISIN: INE883N01014 | Sector: Food Processing
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