Dodla dairy stock jumps 7% in a weak market; here’s why
Shares of Dodla Dairy jumped 7 percent to Rs 726 per share on the BSE on October 4 after the company’s wholly-owned subsidiary, Orgafeed, started a new manufacturing cattle feed plant at Kuppam, Andhra Pradesh. The S&P BSE Sensex was down 364 points or 0.5 percent to 65,147 levels, as of 11:00 am. On a year-to-date (YTD) basis, the stock of this smallcap company has surged 44 percent as against an 8-percent rise in the Sensex benchmark.
Earlier, the stock had touched a 52-week high of Rs 908 per share on July 24, 2023 and sunk to a 52-week low of Rs 417 apiece on March 13, 2023.
In an exchange filing dated October 4, the company said the capacity of the new plant would be 12,000 tonnes per month. While the overall capacity of Orgafeed is 14,400 tonnes per month, the Kadapa plant capacity stands at 2,400 tonnes per month.
Earlier, credit rating agency ICRA had rated long-term and short-term bank facilities of Dodla Dairy as stable. “Securities with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations. Such securities carry very low credit risk,” the agency had said.
In the June-ended quarter (Q1FY24), the company’s consolidated revenue rose 15 percent year-on-year (YoY), while earnings before interest, tax, depreciation, and amortisation (Ebitda) surged 34 percent YoY to Rs 60.3 crore.
The Telangana-based company offers a wide range of milk products such as fresh milk, butter, ghee, paneer, curd, ice-cream, among other items. The company has procurement centers across 5 states and products are available for purchase in 11.
Source : Money control Oct 4th 2023 Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.