Investor to mint money through this milk stock? Find out
The stock jumped by 2.84% with an intraday high of Rs 245.45 on the Sensex.
)
07:21 AM IST
Well, having milk on a daily basis is healthy but investing in milk stocks can prove to make one wealthy as well. Parag Milk Foods is one such FMCG stock that can make you rich. It had a net sale up 30% YoY at Rs 6.7bn, led by 71% YoY growth in SMP, 19.4% of sales. Meanwhile, Liquid milk, 16.3% of sales, grew by 9% YoY.
The Parag Milk Foods stocks were trading at Rs 241.90 per piece, up by Rs. 3.25 or 1.36 % late Wednesday. The stock jumped by 2.84% with an intraday high of Rs 245.45 on the Sensex.
Elara Capital states that " We reiterate Buy with a target price of Rs 366 based on 11.5x FY20 EV/EBITDA." It further tells you why you should put your money in this FMCG stock now
1.Higher ad-pro spend as it rose from 2.6% to 3.3% of sales. Management has guided for 3.0-3.5% of sales for ad-pro spend in FY20, given it is expanding in North & East India and growing the health & nutritional segment.
2. Provisioning of VAT refunds of Rs 70-80mn as the company would not get refunds on CGST and provisioning for Rs 85mn related to bad debts.
3. This summer, milk prices could inch above Rs 27 per liter to bring the average milk procurement cost to Rs 26-27 per liter (+12.5% YoY) for FY20. The company plans to initiate some price hikes and has already reduced discounts on VAD in March 2019.
4. As the company reduces SMP salience and increases liquid milk or VAD salience in FY20E, margin should move up to 10%.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
)
Top 7 Funds With Highest SIP Returns in 10 Years: Rs 10,000 SIP monthly SIP in No. 1 fund has ballooned to Rs 49,01,150
)
Top 5 Mid Cap Mutual Funds with Highest SIP Returns in 7 Years: Rs 25,000 monthly investment has grown to Rs 60.32 lakh in No. 1 scheme
)
Anil Singhvi bullish on 2 pharma, 1 bluechip and 1 midcap stock to buy; check targets and stop losses
)
SIP Calculation: Rs 20,000/month investment, how quickly can you generate Rs 7 crore corpus? See calculations
)
Power of Rs 1,50,000 PPF Investment: How many years will it take to generate over Rs 18 lakh/year tax-free income from Public Provident Fund?
)
9 Stocks to buy for long term: Analysts recommend largecap, midcap scrips; L&T, Siemens Energy on the list
)
Anil Singhvi gives buy on 1 midcap and 2 largecap stocks, advises sell on PSU defence scrip; check targets and stop losses
)
8th Pay Commission Pay Projections for Indian Army: What can be revised salary for Subedar Major, Captain and others at 2.08-2.57 fitment factors
)
BoB vs Indian Bank 444-day FD: Compare maturity on Rs 10 lakh-12 lakh deposits for senior citizens and others
07:21 AM IST