Parag Milk Foods Ltd. share price target

We initiate coverage on Parag Milk with BUY and DCF-based Mar-27E TP of Rs250 (implied P/E of 15x). Strong backend capabilities and brand portfolio enable Parag to scale up front-end capabilities and accelerate growth.

Consol. net sales grew sharply at 14.6% to INR6.3b (v/s est. of INR6.5b). Skimmed milk powder (SMP) grew ~21%, followed by Milk products at ~16%, Fresh milk at ~7% and other segment by ~2% YoY. EBITDA declined 4.6% YoY to...

Parag Milk Foods (Parag) posted a mixed performance with strong topline but weak operating performance on account of (a) higher share of low margin SMP product.

Parag Milk Foods (PMF) reported net sales of INR 6,722mn in 4Q FY19 (29.8% jump over INR 5,178mnYoY) and a PAT of INR 313mn (20% jump over INR 262mnYoY).Revenue from Value Added Products (VAPs) rose 25% YoY to INR 4227mn.Gross margins fell236 bps YoYled by increase in contribution of Skimmed Milk Powder (SMP) by 500 bps to 19.3% as well as lag effect in passing milk price increase to consumers. In April'19 Company has taken price hike of 1%.EBITDAM (excluding...

Parag posted a strong 15.7% revenue growth driven by enhanced volume and a robust 19% growth in the value added product portfolio.

4 February 2019 robust growth in milk products (+18.9% YoY). EBITDA rose 5.7% YoY to driven by an improved product mix, favorable commodity prices and export benefits. However, higher other expenses (+210bp YoY to 18% due to investments in distribution expansion and ad spends) and employee costs (+70bp YoY to 4.2%) led to a 100bp YoY contraction in the EBITDA margin to 10.3%. PAT grew 20%, 30.4% and 46.8%, respectively. EBITDA margin expanded 80bp YoY to 10.4%. (1) Volume growth for the quarter was 3% better than sales growth. (2) Guided for FY20 EBITDA margin of 11-12%, after assuming 5- 7% normal milk procurement inflation.

For Q2FY2019, Parag Milk Foods (PARAG) posted decent performance with 14%/22% yoy growth in revenue/ PAT led by 23 bps expansion in margin. The company has maintained its revenue target of `2700 crore+ for FY2020 backed by widening distribution network and product portfolio. We have maintained our earnings estimates in view of new product..

Despite soft milk prices, Parag posted a strong 14% revenue growth driven by strong volume in the milk and the milk products segment

2 November 2018 to INR5.7b (in-line) in 2QFY19, led by a robust performance by milk products portfolio (+14.3% YoY). EBITDA grew 14.5% YoY YoY to 16.6% of sales) and employee costs (+40bp YoY to 4.1%) restricted EBITDA margin expansion to 10bp YoY (at 10.1%). EBITDA margin expanded 190bp YoY to 10.5%.

For Q1FY2019, Parag Milk Foods (PARAG) posted decent performance with 33%/168% yoy growth in revenue/ PAT led by 376 bps expansion in margin. The company has delivered strong results amid various concerns like farmers strike, rise in procurement prices of raw milk which reiterates our conviction in its premiumisation story. Outlook and Va..

Parag Milk Foods Ltd . (Parag) posted strong all round performance for the quarter. It posted y-o-y growth of 33%/103% and 168% on revenue/ operating profit and net earnings.

We recently met the management of Parag Milk Foods to understand its business and future prospects. Parag is one of the leading dairy product companies in India with milk processing capacity of 2.9 million litre per day. The company has been successful in creating strong brands like GO, Gowardhan and in introducing new products like Avvatar in whey protein segment. As on March, 2018, the company has 17 depots, 140 super stockists, 3000+ distributors and over 2.5 lakh retail touch points. For FY18, Parag reported healthy revenue growth of 13% YoY to | 1954.5...

For Q4FY2018, Parag Milk Foods (PARAG) posted decent performance with 20%/18% yoy growth in revenue/ PAT and decent margin expansion. The company is introducing many new products/ variants and improving its supply chain management which would drive 20%+ earnings growth in next two years. Outlook and Valuation: We have slightly upgraded o..

Parag Milk Foods (PARAG) is one of the leading dairy products companies in India. The company has been successful in creating strong brands like GO, Gowardhan and in introducing new products like Whey Protein. It has become the 2nd player in processed cheese (after Amul) in a short span of 10 years and commands 33% market share. Rising re..

Parag Milk Foods Ltd Q2FY18 reported sales at INR 505 crore which was 6.7% higher on a yoy basis while EBITDA at INR 50 cr grew strong by 48% from INR 34 Cr in Q2FY17 with margins...

PARAG's net sales grew 6.7% YoY (est. of +10%) to INR5b in 2QFY18. EBITDA increased 48% YoY (est. of +10%) to INR500m. Adj. PAT grew 94.5% YoY to INR249m (est. of INR189m). This quarter's revenue also includes INR86m of mega-project incentives for two months. Milk products, Fresh milk, SMP and Others witnessed sales growth of 5.5%, 3.9%, 22.3% and 3.6%, respectively. Ghee and consumer cheese business saw good growth, while Institutional cheese and butter affected the Consumer products business. Gross margins contracted 30bp YoY to 28.1%. Lower other expenses (-330bp...

Parag is the dominant player in the value-added milk segment with milk processing capacity of 2 mn litres per day. Over the years, the company has successfully created a strong brand...

BUY Parag Milk Foods Ltd between CMP at Rs. 263 - Rs. 233 for the target of Rs. 308 - 370