PARAG MILK FOOD LTD – PLAN TO SIP IN

Parag Milk Food is an upcoming diary production brand. Started in 1992, the factory is located on the Mumbai-Noida highway.

BRANDS AND PRODUCTS

The business is engaged in the manufacture of products of truly international quality under internationally famous brand names such as Gowardhan, Go, Topp Up & Pride of Cows.

BRANDS OF PARAG MILK FOOD LTD

Its product portfolio includes ghee,fresh milk, skim milk powder, whole milk powder, paneer, an array of processed and natural cheese, cheese spreads, butter, dahi, dairy whitener and gulab jamun mix. We all know that all these are not only ever demanding, but also the demand is going to hike in the nearby future.

Quality products at reasonable prices will definitely loot the middle and lower middle class market, hugely in the future, surely, that’s what I believe. What you do? That’s what would be, the great advantage of the business. And shall be considered as the key point of any successful business, that one should look for the long-term investment.

KEY FINANCIALS

Current Market Price (CMP): Rs. 253.3 – Rs. 254.30

Market Capital (Avg): Rs. 2200 Cr.

Book Value: Rs. 47.72

EPS: 1.20

P/E: 37/38, Which was around 58 in the recent past. Has been reduced drastically within a short span of time ( 2 Months ). Which can be considered as a positive indication towards it’s price stability.

P/B: 5.31 Which is less than Vadilal Ind (7.62), Britannia (18).

Face Value: Rs.10 That’s what many good businesses keep-up their face value.

Dividend (%): 0. May consider it as, the company is utilising the profits entirely for its growth. Hence huge growth rate can be expected.

53 Week low /high: Rs. 201.75 /Rs. 357. I hope it will soon cross the 52 week high.

GROWTH RATE

There is a considerable improvement in sales of Rs. 14 Cr for the quarter ended March 2017, as compared to the previous year. That’s in comparison with the quarter ended March 2016.

The Net Profit for the financial year 2014 is Rs. 16  Cr., whereas by the year 2016 it has been improved to Rs. 47.30 Cr. That’s we can consider as a growth rate of around 200% for 2 years. It may jump to 400% for the coming 2 years, technicals are Suggesting.

TECHNICALS

PARAG IS JUST TO RAISE

Consolidation phase is over. What’s left is the distribution phase. During distribution phase, who are really going to gain are the long term investors. One big tally takes the stock value to the level that will surpass all our expectations. Better to keep invested to be the part of that in imaginable growth and prosperity.

Don’t forget to write your valuable comment below.

Dare to reach the target price here.

 

 

 

Hameeda Ghori

Certified Financial Planner And Stock Analyst

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