Consumer Food · Founded 2013 · www.icldairy.com · BSE 542935 · · ISIN INE0AU701018
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1. Business Overview
ICL Organic Dairy Products Ltd. is an Indian company primarily engaged in the processing and marketing of organic dairy products. Its core business model involves sourcing organic milk from certified farmers, processing it in its facilities, and then distributing a range of organic dairy products under its brand. The company aims to provide pure, unadulterated dairy products free from pesticides, hormones, and antibiotics. It makes money through the sales of products like organic milk, ghee, paneer, curd, lassi, and other related organic dairy items to consumers through various distribution channels.
2. Key Segments / Revenue Mix
The company's revenue is primarily derived from the sale of a diversified portfolio of organic dairy products. While specific revenue breakdowns by product category (e.g., milk vs. ghee vs. paneer) are not readily available in public reports for granular analysis, the business is understood to be focused entirely on the organic dairy segment.
3. Industry & Positioning
ICL Organic Dairy Products operates within the Indian consumer food sector, specifically targeting the burgeoning organic dairy segment. The broader Indian dairy industry is vast and largely unorganized, but the organized sector, particularly the premium and organic segments, is experiencing significant growth. ICL Organic Dairy Products positions itself as a niche player focused on health-conscious consumers willing to pay a premium for certified organic and pure dairy products. It competes with other regional organic dairy brands and the organic product lines launched by larger conventional dairy players.
4. Competitive Advantage (Moat)
The company's competitive advantages are likely derived from:
Organic Certification & Trust: Building a brand reputation based on rigorous organic certification processes and maintaining trust with consumers regarding product purity.
Sourcing Network: Developing and maintaining a reliable network of certified organic dairy farmers, which can be a barrier to entry for new players needing consistent organic milk supply.
Niche Focus: Specialization in the organic segment allows for dedicated marketing and product development tailored to this growing consumer base, potentially creating brand loyalty within the niche.
However, switching costs for consumers are low, and larger conventional dairy players have significantly greater scale and distribution networks.
5. Growth Drivers
Increasing Health Awareness: Growing consumer awareness about health, wellness, and the benefits of organic food in India.
Rising Disposable Incomes: As disposable incomes rise, more consumers are willing to spend on premium and organic food products.
Expanding Distribution: Penetration into new geographical markets and expanding presence in modern retail, e-commerce, and direct-to-consumer channels.
Product Diversification: Introducing more value-added organic dairy products and expanding the product portfolio to capture a larger share of the organic food market.
Government Initiatives: Support for organic farming and related agricultural practices could benefit the supply chain.
6. Risks
Competition: Intense competition from both established large dairy companies entering the organic space and other emerging organic brands, potentially leading to price wars or market share erosion.
Supply Chain Volatility: Risks associated with sourcing certified organic milk, including price fluctuations of raw materials, maintaining organic integrity across the supply chain, and potential shortages.
Consumer Price Sensitivity: Organic products typically command a premium, making them susceptible to consumer price sensitivity, especially during economic downturns or if the perceived value-for-money diminishes.
Regulatory & Certification Risks: Strict compliance requirements for organic certifications and food safety standards; any lapse could severely damage brand reputation and lead to penalties.
Brand Reputation: Any quality issues, contamination concerns, or doubts about the 'organic' claim could significantly impact consumer trust and sales.
7. Management & Ownership
ICL Organic Dairy Products Ltd. is typically a promoter-led company. Information regarding specific promoter names, their experience, and the precise ownership structure (promoter vs. public holding) would need to be sourced from the latest annual reports or stock exchange filings. Generally, promoter-led companies in India often have significant promoter holdings, indicating direct alignment of interests. The quality of management can be assessed by their ability to navigate the competitive landscape, ensure organic integrity, and scale operations effectively.
8. Outlook
ICL Organic Dairy Products operates in the promising and rapidly expanding organic food sector in India, driven by increasing health consciousness and rising disposable incomes. This provides a substantial growth runway for the company. The focus on certified organic products helps in building a premium brand image and catering to a niche, yet growing, segment of consumers. However, the company faces significant challenges, including intense competition from larger, well-funded players, the inherent complexities and costs of maintaining an organic supply chain, and consumer price sensitivity for premium products. Sustained growth will depend on its ability to effectively scale operations, maintain stringent quality and organic standards, expand its distribution network efficiently, and continue to build a strong, trustworthy brand identity amidst increasing competition.
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| #(Fig in Cr.) |
|---|
| Net Sales |
| Other Income |
| Total Income |
| Total Expenditure |
| Operating Profit |
| Interest |
| Depreciation |
| Exceptional Income / Expenses |
| Profit Before Tax |
| Provision for Tax |
| Profit After Tax |
| Adjustments |
| Profit After Adjustments |
| Adjusted Earnings Per Share |
| #(Fig in Cr.) | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | TTM |
|---|---|---|---|---|---|---|---|
| Net Sales | 3 | 12 | 16 | 5 | 4 | 4 | |
| Other Income | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total Income | 3 | 12 | 16 | 5 | 4 | 4 | |
| Total Expenditure | 2 | 12 | 15 | 4 | 3 | 3 | |
| Operating Profit | 0 | 0 | 0 | 0 | 0 | 0 | |
| Interest | 0 | 0 | 0 | 0 | 0 | 0 | |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profit Before Tax | 0 | 0 | 0 | 0 | 0 | 0 | |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profit After Tax | 0 | 0 | 0 | 0 | 0 | 0 | |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profit After Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | |
| Adjusted Earnings Per Share | 33.6 | 232.9 | 1.6 | 0.4 | 0.2 | 0.1 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 0% | -37% | 6% | 0% |
| Operating Profit CAGR | 0% | 0% | 0% | 0% |
| PAT CAGR | 0% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -5% | -12% | 14% | NA% |
| ROE Average | 1% | 2% | 30% | 34% |
| ROCE Average | 1% | 3% | 8% | 8% |
| #(Fig in Cr.) | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 |
|---|---|---|---|---|---|---|
| Shareholder's Funds | 0 | 0 | 3 | 12 | 12 | 12 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 2 | 2 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | 0 | 1 | 0 | 0 | 0 | 0 |
| Total Liabilities | 2 | 3 | 3 | 12 | 13 | 13 |
| Fixed Assets | 2 | 2 | 2 | 3 | 3 | 3 |
| Other Non-Current Assets | 0 | 0 | 0 | 0 | 7 | 7 |
| Total Current Assets | 0 | 1 | 1 | 8 | 1 | 2 |
| Total Assets | 2 | 3 | 3 | 12 | 13 | 13 |
| #(Fig in Cr.) | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 |
|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 0 | 0 | 1 | 0 | 1 | 1 |
| Cash Flow from Operating Activities | 0 | 1 | -1 | -7 | 8 | 0 |
| Cash Flow from Investing Activities | 0 | 0 | 0 | -2 | -7 | 0 |
| Cash Flow from Financing Activities | 0 | 0 | -0 | 9 | 0 | -0 |
| Net Cash Inflow / Outflow | 0 | 1 | -1 | 1 | 0 | 0 |
| Closing Cash & Cash Equivalent | 0 | 1 | 0 | 1 | 1 | 1 |
| # | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 |
|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 33.57 | 232.88 | 1.63 | 0.44 | 0.17 | 0.11 |
| CEPS(Rs) | 33.57 | 232.88 | 1.63 | 0.44 | 0.17 | 0.11 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 65.08 | 298.3 | 17.58 | 18.89 | 19.28 | 19.62 |
| Core EBITDA Margin(%) | 3.01 | 4.07 | 2.56 | 8.76 | 4.87 | 3.36 |
| EBIT Margin(%) | 3.01 | 4.07 | 2.56 | 8.76 | 4.87 | 3.36 |
| Pre Tax Margin(%) | 2.9 | 3.94 | 2.4 | 7.7 | 3.89 | 2.64 |
| PAT Margin (%) | 2 | 2.9 | 1.75 | 5.7 | 2.88 | 1.96 |
| Cash Profit Margin (%) | 2 | 2.9 | 1.75 | 5.7 | 2.88 | 1.96 |
| ROA(%) | 2.23 | 12.61 | 8.54 | 3.4 | 0.83 | 0.55 |
| ROE(%) | 51.58 | 128.17 | 16.12 | 3.71 | 0.91 | 0.59 |
| ROCE(%) | 3.63 | 19.7 | 13.71 | 5.62 | 1.5 | 1 |
| Receivable days | 0 | 0 | 0 | 0 | 0 | 0 |
| Inventory Days | 9.43 | 2.08 | 2.01 | 9.82 | 16.24 | 20.1 |
| Payable days | 0 | 1.33 | 1.8 | 7.44 | 5.44 | 0 |
| PER(x) | 0 | 0 | 0 | 39.1 | 120.39 | 155.92 |
| Price/Book(x) | 0 | 0 | 0 | 0.92 | 1.08 | 0.91 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.71 | 0.1 | 0.05 | 2.09 | 3.25 | 2.73 |
| EV/Core EBITDA(x) | 23.44 | 2.54 | 2.01 | 23.88 | 66.79 | 81.02 |
| Net Sales Growth(%) | 0 | 379.4 | 30.11 | -70.3 | -22.36 | -2.88 |
| EBIT Growth(%) | 0 | 548.56 | -18.11 | 1.5 | -56.84 | -32.9 |
| PAT Growth(%) | 0 | 593.72 | -21.26 | -3.46 | -60.76 | -33.88 |
| EPS Growth(%) | 0 | 593.72 | -99.3 | -72.87 | -60.77 | -33.87 |
| Debt/Equity(x) | 20.36 | 5.49 | 0 | 0.02 | 0.03 | 0.01 |
| Current Ratio(x) | 1.52 | 1.52 | 5.96 | 23.37 | 3.84 | 3.88 |
| Quick Ratio(x) | 1.17 | 1.44 | 5.46 | 22.95 | 3.37 | 3.36 |
| Interest Cover(x) | 26.63 | 30.46 | 15.78 | 8.23 | 4.98 | 4.68 |
| Total Debt/Mcap(x) | 0 | 0 | 0 | 0.02 | 0.02 | 0.01 |
| # | Mar 2020 | Sep 2020 | Mar 2021 | Sep 2021 | Mar 2022 | Sep 2022 | Mar 2023 |
|---|---|---|---|---|---|---|---|
| Promoter | 47.99 | 47.99 | 47.99 | 47.99 | 47.99 | 47.99 | 47.99 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 52.01 | 52.01 | 52.01 | 52.01 | 52.01 | 52.01 | 52.01 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2020 | Sep 2020 | Mar 2021 | Sep 2021 | Mar 2022 | Sep 2022 | Mar 2023 |
|---|---|---|---|---|---|---|---|
| Promoter | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 |
| # | Mar 2020 | Sep 2020 | Mar 2021 | Sep 2021 | Mar 2022 | Sep 2022 | Mar 2023 |
|---|---|---|---|---|---|---|---|
| Promoter | 47.99 | 47.99 | 47.99 | 47.99 | 47.99 | 47.99 | 47.99 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 52.01 | 52.01 | 52.01 | 52.01 | 52.01 | 52.01 | 52.01 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2020 | Sep 2020 | Mar 2021 | Sep 2021 | Mar 2022 | Sep 2022 | Mar 2023 |
|---|---|---|---|---|---|---|---|
| Promoter | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 0% | -37% | +6% | — |
| Operating Profit CAGR | — | — | — | — |
| PAT CAGR | — | — | — | — |
| Share Price CAGR | -5% | -12% | +14% | — |
| ROE Average | +1% | +2% | +30% | +34% |
| ROCE Average | +1% | +3% | +8% | +8% |
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