Initiate coverage on Prabhat Dairy Ltd as a BUY with a price objective of Rs 220 representing a potential upside of 86% from the CMP of Rs 118
Prabhat Dairy Ltd (Prabhat) has established itself as a preferred specialty ingredient supplier to top MNC clientele. Its recent shift to focus on the B2C segment and introduction of a complete portfolio of dairy products augurs well for the next leg of growth. The strong outlook of the organized dairy sector and boost in consumption of VADP is expected to drive the revenues for the company. Moderate pricing, aggressive A&P; spend (1.4% of revenues) and focus on increasing distribution reach of B2C products is expected to help...