Parag Milk Shares Hit 7-Yr High, Surge 40% in September

Parag Milk Foods’ stock price has rallied about 40% so far in September 2025, hitting a seven-year high of ~₹316.50 on the BSE, its strongest since September 2018. The upmove was driven by strong trading volumes—over four times the average—and investor optimism stemming from a positive business outlook. Key catalysts include a recent GST cut on several dairy products effective from September 22, 2025 (bringing many from 12% / 5% down to 5%, in some cases to 0%), favorable margins, and rising demand for value-added dairy like cheese, ghee and UHT milk.

Industry Insight:

Parag Milk’s strong performance signals broader sector momentum in processed and value-added dairy segments. The GST rate cuts reduce costs for consumers and improve margins for companies, likely boosting demand for higher-margin products like cheese, paneer, UHT milk and sweets. For milk procurement, this could increase demand from processors, pushing up raw milk prices. However, the effect on feedstocks (like maize) might be more muted: poultry/feed demand already competes for maize, but dairy feed demand could rise slightly as dairy output gets a boost from higher value product demand. That said, the main pressure on maize prices will continue to come from ethanol policy, feed demand, and grain supplies. Parag’s stock surge reflects investor sentiment that dairy companies with diversified product portfolios and strong rural distribution will benefit most in this policy environment.

Source : Dairynews7x7 Sep 16th 2025 BS