Parag Milk Foods EXPLODES! Profits Leap 56%, Stock Surges 16% - Is This the Next Big Dairy Star?

Parag Milk Foods Ltd. experienced a significant boost in its stock price, surging as much as 16% on Wednesday, November 12, marking its second consecutive day of gains. This rally followed the company's strong financial performance for the September quarter.

Revenue for the quarter rose by 15.7% year-on-year, reaching ₹1,007.9 crore, up from ₹871.3 crore in the same period last year. Net profit saw a substantial jump of 56.3% year-on-year, climbing to ₹45.7 crore from ₹29.2 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 18% to ₹71.2 crore, compared to ₹60.4 crore a year earlier. Profit margins expanded slightly to 7.1% from 6.9%, while gross margins improved to 25.8% from 23.6%.

The company reported a healthy 10% year-on-year volume growth. Its core product categories – ghee, cheese, and paneer – were key drivers, contributing 59% to overall revenue with a 23% value growth and 14% volume growth. Premium brands like Pride of Cows and Avvatar represented 9% of the business. Notably, new-age business revenue surged by an impressive 79% year-on-year, highlighting strong traction in value-added and premium segments.

Impact: This strong earnings report significantly boosts investor confidence in Parag Milk Foods, potentially leading to further stock appreciation and increased interest in the Indian dairy and FMCG sector. Rating: 7/10

Difficult Terms: EBITDA: Stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance. Year-on-year (YoY): Compares data from one period to the same period in the previous year. Margins: Refers to profitability ratios, such as profit margin or gross margin, indicating how much profit a company makes from its revenue. Gross Margins: The percentage of revenue that exceeds the cost of goods sold. Volume Growth: The increase in the number of units of a product sold.