Parag Milk Food Limited Stock Analysis
Best Multibagger Penny stock to buy in 2020.
Market Cap (Rs Cr.) – 906.33
About Parag Milk Foods Ltd
Parag Milk Foods is an Indian company that manufactures, markets and sells milk and milk products. The company is India’s second largest producer of cheese under its brand Go and the country’s largest producer of cow ghee under its brand Govardhan.
Achievements
Diverse Product Portfolio catering to all segments of customers
The company’s brands include Gowardhan, Go, Pride of Cows and Topp Up. The company launched the Go brand in 2009, Pride of Cows in 2012 and Topp Up in 2013. The company sells milk, ghee, dahi and paneer under the Govardhan brand and cheese, milk, chaas, lassi, yoghurt under Go brand. The company is India’s second-largest producer of cheese under its brand Go and the country’s largest producer of cow ghee under its brand Govardhan.
The company supplies milk directly from farms to customers homes under the brand Pride of Cows. The milk is produced at Bhagyalaxmi Dairy in Manchar, and procured from 3,800 Holstein Freisan cows. The milk is supplied to households in Mumbai, Pune, Surat and is airlifted to customers in New Delhi daily. The company uses an invitation-only mobile application subscription-based distribution model for this brand. In June 2019, Pride of Cows claimed to become the first Indian brand to sell fresh milk in Singapore. The company airlifts the milk from Pune to Singapore daily and uses a home delivery model to reach the product to the end consumer.
In 2019, the Parag Milk Foods introduced Whey protein produced from cow milk and branded under Go Protein Power and Avvatar. The company also sells milk based energy drinks under the brand Topp Up.
- 2nd Largest Player in Cheese in the India with 35% Market Share
- Leaders & Pioneers of Cow Ghee category under Brand ‘Gowardhan’ Ghee
- India’s First Company to launch a truly made in India B2C Whey protein powder under Brand ‘Avvatar’
- Our Brand PowerLeading private player in UHT Category under the Brand‘GO’
- Pioneers of Fresh Paneerwith a 75 Day Shelf Life
- Own one of the Largest Cow Farms in India
- Converted waste into value-added products like organic fertilizers from cow manure and urine under brand ‘BhagyalaxmiDairy Farms’
- Introduced the concept of Farm-to-Home milk under the brand ‘Pride of Cows’
Latest Trading Price
Rs 107.90
Parag Milk Foods Finance
| Annual | MAR 2019 | MAR 2018 | MAR 2017 | MAR 2016 | MAR 2015 |
|---|---|---|---|---|---|
| Sales | 2,395.66 | 1,954.51 | 1,730.74 | 1,645.13 | 1,444.14 |
| Other Income | 10.26 | 12.00 | 12.89 | 1.62 | 1.53 |
| Total Income | 2,405.93 | 1,966.50 | 1,743.63 | 1,646.75 | 1,445.67 |
| Total Expenditure | 2,222.35 | 1,811.82 | 1,711.44 | 1,530.92 | 1,364.48 |
| EBIT | 183.58 | 154.69 | 32.19 | 115.83 | 81.19 |
| Interest | 35.79 | 35.73 | 33.31 | 49.04 | 46.92 |
| Tax | 27.07 | 31.90 | -5.88 | 19.47 | 2.06 |
| Net Profit | 120.72 | 87.06 | 4.76 | 47.32 | 32.21 |
Dividend (%) – 10.00
Shareholdings
| Standalone | March 2020 | September 2019 |
|---|---|---|
| Promoters | 46.2 | 45.96 |
| Pledged | 48.1 | 35.87 |
| FII/FPI | 14.43 | 17.74 |
| Total DII | 20.46 | 17.65 |
| Fin.Insts | 0.13 | 0.13 |
| Insurance Co | 0 | 0 |
| MF | 0.6 | 0.65 |
| Others DIIs | 19.73 | 16.87 |
| Others | 18.9 | 18.65 |
After 30 March, 2020 Pledged Shares are reduced by making payment to Kotak Mahindra Investments Limited and now the outstanding loan amount is only Rs.10.85crores.
The promoters have further informed the Companythat they would repay the ENTIRE outstanding loanof Rs.10.85 crores as per the earlier announcements and release the ENTIRE lot of pledged shares.
Parag Milk Foods Ratings Upgaraded
ICRA has upgraded the long-term bank facilities of Parag Milk from ‘ICRA A’ to ‘ICRA A+’ with stable outlook. In a similar trend, its short-term bank facilities have been revised to ‘ICRA A1’ from ‘ICRA A2+’.