Parag Milk Foods Share Price

The company's unaudited consolidated financial report for the second quarter of FY19 indicates the following:

1. The total income of the company was Rs.574.94 crore. This was an increase from Rs.551.20 crore in the previous quarter.
2. The expenses incurred by the company over a quarterly period increased from Rs.513.4 crore in the first quarter of the year to Rs.536.36 crore in the second quarter.
3. The profit after tax was pegged at Rs.30.42 crore and this was an increase from Rs.28.26 crore in the previous quarter.

1. The basic earnings per share was Rs.3.63 and the diluted earnings per share was Rs.3.62 for the quarter.

Q1 Results FY19

The company's standalone unaudited financial statement for the first quarter of FY19 indicates the following:

1. The total income of the company was Rs.539.25 crore. This was an increase from Rs.510.91 crore in the previous quarter.
2. The total expenses of the company increased from Rs.479.88 crore in the fourth quarter of the previous financial year to Rs.503.70 crore in the first quarter of the financial year spanning 2018-2019.

1. The profit after tax for the first quarter of the year was Rs.26.49 crore. This was an increase from Rs.22.11 crore in the previous quarter.
2. The basic earnings per share was Rs.3.16 and the diluted earnings per share was Rs.3.15 over the quarter.

Annual Report 2017-2018

The company released the audited standalone financial results for the financial year ending March 2018. From this result, we can see the following:

1. The total income of the company was Rs.1,923.74 crore for the year. This was an increase from Rs.1,709.71 crore in the preceding year.

1. The total expenses incurred by the company increased from Rs.1,699.75 crore in FY17 to Rs.1,816.12 crore in FY18.
2. The profit for the year after tax was pegged at Rs.78.48 crore for FY18 and this was a solid improvement over the loss incurred in the previous year to the tune of Rs.1.76 crore.
3. The basic earnings per share for the year was Rs.9.36 and the diluted earnings per share was Rs.9.33.

Q4 Results FY18

The company released the standalone financial results for the final quarter of the financial year spanning 2017-2018 and this indicated the following:

1. The total income of the company for the quarter was Rs.510.91 crore for the quarter. This was a slight decrease from the total income of the company over the previous quarter at Rs.511.06 crore.
2. The total expenses incurred by the company was pegged at Rs.479.8 crore. This was an increase over the Rs.476.09 crore incurred over the previous quarter.
3. The net profit of the company over the quarter after taxes was Rs.R21.91 crore. This was a decrease from the previous quarter when the net profit of the company after taxes was Rs.23.90 crore.
4. The basic earnings per share for the quarter was pegged at Rs.2.64 and the diluted earnings per share was pegged at Rs.2.63.

Stock trends in 2018

1. The stock was trading at about Rs.297 in the beginning of January of the year 2018. The stock then fluctuated a lot over the course of the month and the final closing price for the month was about Rs.286.
2. The stock trend in February 2018 was similar with the final price for the month going lower at about Rs.279.
3. March 2018 marked a period of solid decline for the stock with the final price for the month going below Rs.250.
4. In April 2018, the stock increased in price over the course of the month and the final price for the month was over Rs.300.
5. While the stock fluctuated a lot in May 2018, the stock still closed higher at about Rs.340 at the end of the month.

1. The stock declined over the course of the last few days of June 2018 and the final price for the month was about Rs.313.
2. While the stock declined a little in July 2018, it regained a bit in price towards the close of the month. The stock increased in price for a short period in August 2018 but came back down to its old price.
3. September 2018 marked a decrease in the price of the stock. A final 8% dividend was announced on 11 September 2018. The final price for September 2018 was about Rs.239.
4. The price of the stock increased marginally in October 2018 and this was almost sustained throughout the months of October, November, and December. The final price for December 2018 was about Rs.247.

Stock trends in 2017

1. The stock was trading at a little Rs.260 in January 2017. The price of the stock did not fluctuate sharply in the month but did change a lot gradually. February 2017 saw a sharp decline in the price of the stock.
2. March 2017 marked a period in which the stock gained in price. The price gain was sustained in April 2017 and through May 2017.
3. June 2017 marked a period of decrease for the stock price. The final price for the month was about Rs.216. The share price recovered a bit in July 2017 though.
4. August marked a period of a sharp decrease followed by a gradual increase in price. A final 5% dividend was announced on 1 August 2017.
5. September 2017 marked a period of decrease for the stock price. The shares recovered over the course of October 2017 and the final price for that month was about Rs.270.

1. November 2017 marked a period of a sharp decrease in price with the final price for the month being about Rs.240.
2. The stock rose a lot in December 2017 and the final price for the month was about Rs.298.

Stock trends in 2016

1. The stock began trading at a price of about Rs.247 on 19 May 2016. The end of June 2016 marked a period of price increase for the stock price and the final price for the month was about Rs.278.
2. While the price rose some more in July 2016, there were a lot of fluctuations for the last couple of weeks of that month. The final price for the month was about Rs.323.

1. The fluctuations in price persisted through August and September 2016 when the price definitively dropped towards the close of the latter month.
2. The price of the shares increased a little over October 2016 but fell sharply in November 2016 offsetting all the increase. The stock definitively decreased in price again over December 2016 and the final price for the month was about Rs.260.

Should you invest in stocks of Parag Milk Foods?

1. The company has a number of products in its line-up and is considered one of the leading exporters of dairy products in the company.
2. The company has a number of manufacturing facilities with options to expand if necessary.

1. The company has shown that it can perform well by converting a loss over the course of one financial year to a solid profit the next year.
2. The company is introducing more and more products to its lineup.
3. Considering the increase in health fads recently, the company has even introduced a whey product.
4. Thus, we can see that the company is responding well to market changes.

Considering these points, it can be seen that the company is performing well and the stock of the company could be a valuable buy. But stocks are volatile and it would be best to perform proper, detailed research on the company before investing in it.

Company information

The company operates several brands—Avvatar, Gowardhan, Go, Pride of Cows, and Topp Up. The company operates a milk processing unit at Manchar. Manchar is home to a cheese processing unit and the Bhagyalaxmi Dairy Farm, both operated by the company. The company has an additional milk processing unit at Palamner.

History of the company

The company was begun in the year 1992. The company initially began by procuring 20,000 litres of milk per day. Six years later, the Gowardhan brand was launched in order to sell ghee and butter. This began from the Manchar VAP plant. The same year also saw the introduction of toned milk as a product. Two years after that, the company began selling cheese on a small scale. This was the year 2000, during which the company also began exporting to Southeast Asia, the Middle East, and Africa. In the year 2002, the company introduced a very new product called cheese powder.

In the year 2005, the company earned the distinction of being the largest Indian exporters of dairy products. 95% of the products were manufactured and exported. In the year 2008, the company became the leading cheese brand in India and this was one of the reasons that paved the way for an investment by Motilal Oswal PE.

The years 2010, 2011, and 2012 were landmark years for the company. In 2010, the company introduced yoghurt products. Then, in 2011, the company introduced UHT milk and paneer. These were launched under a brand called "Pride of Cows." In 2012, the company secured funding from IDFC Alternatives. In 2014, the company also introduced whey products.

Management

The company is headed by the following individuals:

Mr. Devendra Shah - Chairman

Mr. Pritam Shah - Managing Director

Mr. BM Vyas - Director

Mr. Sunil Goyal - Director

Mr. Narendra Ambwani - Director

Mr. Nitin Dhavalikar - Director

Mrs. Radhika Pereira - Director

Mr. Ramesh Chandak - Director

Mr. H S Oberoi - President

Mr. Sachin Shah - Vice President, Marketing

Mr. Sanjay Mishra - General Manager, Works

Mr. Sanjay Nakra - General Manager, Operations

Parag Milk Foods listings on NSE, BSE, and stock indices

The company is listed on the BSE and NSE under the following codes:

1. BSE: 539889
2. NSE: PARAGMILKEQ
3. IND: Food processing - Bakery/Dairy/Fruits/Others
4. ISIN Code: INE883N01014
5. SECT: Food processing

The company is included as part of the following indices:

1. Nifty 500
2. Nifty Smallcap 250

1. S&P BSE 400 MidSmallCap Index
2. S&P BSE AllCap
3. S&P BSE MidSmallCap
4. Nifty MidSmallCap 400
5. S&P BSE 250 SmallCap Index

1. S&P BSE 500
2. S&P BSE Fast Moving Consumer Goods
3. S&P BSE SmallCap

Location

The head office of the company is located at the following address:

Floor number 20, Nirmal Building, Nariman Point, Mumbai - 400 021

Telephone: 022 4300 5555

Fax: 022 4300 5580

The registered office of the company is located at the following address:

Flat number 1, Plot number 19, Nav Rajasthan Housing Society, Behind Ratna Memorial Hospital, Shivaji Nagar, Pune - 411 016, Maharashtra, India

Telephone: 020 4131 4444

The corporate office of the company is located at the following address:

Awsari Phata, Manchar District, Pune

Telephone: +91 2133 224761 / 62 / 63

Fax: +91 2133 223940

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DISCLAIMER:

The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.