Shares of Dodla Dairy Ltd on Monday surged nearly 16 percent after the company acquired Sri Krishna Milks Pvt Ltd for Rs 50 crore. Post the acquisition, Dodla will consolidate its position in North Karnataka, Goa and some bits of Maharashtra.
The stock rallied 19.23 percent to Rs 548 during the day on the BSE. It finally settled at Rs 528.65, a jump of 15.02 percent.
At the NSE, it zoomed 15.96 percent to settle at Rs 530. Dodla Dairy Ltd had on Saturday said it has acquired Karnataka-based Sri Krishna Milks Pvt Ltd for Rs 50 crore to expand its business.
The company has executed an agreement with Sri Krishna Milks Pvt Ltd for the acquisition of the business as a "going concern" and on a slump purchase basis for consideration of Rs 50 crore.
The acquisition, in the next couple of years, might be earnings decretive primarily on the back of debt on the books and interest payments will not be less than the profit addition.
ICICI Securities has a buy rating on the stock with a target price of Rs 615.
Watch the accompanying video of CNBC-TV18’s Mangalam Maloo for more details.
(Edited by : Priyanka Deshpande)
First Published: Mar 21, 2022 3:39 PM IST
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