Parag Milk Foods shares rally 15% to hit 52-week high after Nikhil Vora ups stake
Veteran investor Nikhil Vora's Sixth Sense Fund purchased an additional 6.8 lakh shares of Parag Milk Foods at Rs 121.23 apiece, according to the bulk deal data available with the NSE. As of March 2023, Sixth Sense already had around 45 lakh of fully paid-up equity shares, amounting to 3.8 percent stake in the company
Shares of Parag Milk Foods rallied 15 percent in Monday's trade after veteran investor Nikhil Vora upped his stake in the company. The stock opened at Rs 122 against the previous close of Rs 119.75 per share on Friday and rose further to hit a 52-week high of Rs 137.40 apiece. At 2 pm, the stock was trading 9.68 percent higher at Rs 132.05 on the National Stock Exchange (NSE).
The stock gained 20 percent in the last five trading sessions. On a year-to-date basis, the shares are up nearly 30 percent while it has risen 70 percent in the last one year. The one analyst tracking the company has a 'hold' call on the counter, according to Bloomberg data.
Technically, Parag Milk Foods is trading above eight out of eight simple moving average (SMAs). The 14-day relative strength index (RSI) is 72.6, implying the stock may show pullback as RSI above 70 is considered overbought. Money Flow Index (MFI) is at 90.5, and MFI above 80 is considered strongly overbought.
On Friday (June 23), Vora's Sixth Sense Fund purchased an additional 6.8 lakh shares of the company at Rs 121.23 apiece, according to the bulk deal data available with the NSE. As of March 2023, Sixth Sense already had around 45 lakh of fully paid-up equity shares, amounting to 3.8 percent stake in the company.
Financials
In the fourth quarter (Q4FY23) of previous fiscal, the company's total income rose by 41.43 percent to Rs 810 crore. Parag Milk Foods posted a net profit of Rs 22.35 crore for the quarter under review as against a loss of Rs 591.78 crore in Q4FY22.
Parag Milk Foods have Gowardhan in the ghee sector, Go cheese in the cheese sector, and Avvatar in the whey sector. They anticipate that the sizes of Ghee, Cheese, and Whey markets will grow to 1,23,000 crore, 20,000 crore, and 2,000 crore, respectively, during the next three years.
At present, Parag Milk Foods is one of the top five cheese producers in the country. The company’s key clients includes Domino's, Pizza Hut, and Papa John's. The company has a milk processing capacity of 3.4 million litres per day, according to its investor presentation.
Their ghee and cheese categories have expanded by 43.5 percent, while their most lucrative product, Avvatar, has grown by 123 percent year-on-year and has doubled their protein business.
First Published: Jun 26, 2023 2:52 PM IST
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