Consumer Food · Founded 1992 · www.paragmilkfoods.com · BSE 539889 · NSE PARAGMILK · ISIN INE883N01014
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Business
Parag Milk Foods Ltd. is an Indian dairy and food products company. Its core business involves the procurement, processing, and marketing of a wide range of dairy products. The company sources raw milk directly from farmers, processes it in its manufacturing facilities, and then distributes its products under various brands. It generates revenue primarily through the sale of liquid milk, cheese, ghee, paneer, curd, yogurt, milk powder, and whey protein supplements across retail, institutional, and export channels.
Revenue Mix
The company operates across several key product categories, though specific revenue percentages are not static or always publicly broken down in detail. Its major segments include:
Liquid Milk: Packaged fresh milk (including premium variants like 'Pride of Cows').
Value-Added Products: This is a significant focus and includes:
Cheese: Under the 'Go' brand (various types like cheddar, mozzarella, processed cheese).
Ghee: Under the 'Gowardhan' brand.
Paneer, Curd, Yogurt, Buttermilk, Lassi: Also under 'Gowardhan' and 'Go' brands.
Milk Powder & Whey Protein: Including the 'Avvatar' brand for whey protein.
The company strategically focuses on value-added products due to their higher margins compared to liquid milk.
Industry
The Indian dairy industry is one of the largest globally, characterized by a mix of cooperative federations (like Amul), large private players, and a vast unorganized sector. Parag Milk Foods is positioned as a prominent private sector player in the organized dairy industry, particularly known for its strong presence in value-added products like cheese (where 'Go Cheese' is a well-recognized brand) and ghee ('Gowardhan Ghee'). It competes with national players such as Amul, Mother Dairy, Hatsun Agro Product, Heritage Foods, and various regional cooperatives and private dairies. The industry is witnessing a gradual shift from loose milk to branded, packaged products.
MOAT
Brand Equity: Established and recognized brands like 'Gowardhan' (for traditional dairy products) and 'Go' (for modern dairy products, especially cheese) enjoy consumer trust and recall. 'Pride of Cows' offers a premium niche.
Processing Capabilities: The company has invested in modern processing facilities, including specialized units for cheese production, giving it an edge in quality and variety for value-added products.
Integrated Model & Farmer Relationships: Direct milk procurement from farmers helps ensure quality control and supply stability, building long-term relationships.
Distribution Network: An established distribution network across key regions in India, reaching various retail formats.
Growth Drivers
Rising Dairy Consumption: Increasing per capita consumption of milk and dairy products in India, driven by population growth, rising disposable incomes, and urbanization.
Shift to Branded & Value-Added Products: Growing consumer preference for hygiene, convenience, and variety offered by branded, packaged dairy, especially in cheese, yogurt, and paneer segments.
Distribution Expansion: Expanding its reach into new geographies and strengthening its presence in existing markets, including modern trade and e-commerce.
Product Portfolio Diversification: Growth through new product launches, especially in health & nutrition (e.g., whey protein 'Avvatar') and premium segments.
Premiumization: Success of premium offerings like 'Pride of Cows' indicates potential for higher-margin growth.
Risks
Raw Material Price Volatility: Fluctuations in milk procurement prices directly impact the cost of goods sold and profitability.
Intense Competition: The Indian dairy market is highly competitive with large cooperatives, established private players, and regional players.
Regulatory Changes: Stricter food safety norms (FSSAI) or changes in dairy policies can impact operations and costs.
Supply Chain & Cold Chain Management: Maintaining an efficient cold chain is crucial for perishable dairy products, posing logistical and cost challenges.
Changing Consumer Preferences: Evolving consumer tastes, dietary trends, or perception of dairy products could impact demand for certain segments.
Management & Ownership
Parag Milk Foods Ltd. is a promoter-led company. It was founded by Mr. Devendra Shah, who serves as the Chairman, providing strategic direction. The management team has significant experience in the dairy industry. The ownership structure is primarily controlled by the promoter group, indicating a concentrated ownership and decision-making by the founding family.
Outlook
Parag Milk Foods is well-positioned to capitalize on the secular growth trend in India's organized dairy sector, driven by increasing consumption and a shift towards branded, value-added products. Its strong brand portfolio, particularly in cheese and ghee, and its focus on premium and nutritional products like whey protein, provide avenues for margin expansion and diversification. However, the company faces inherent challenges from raw material price volatility, intense competition from well-entrenched national and regional players, and the continuous need for investment in processing and cold chain infrastructure. Sustained growth will depend on effective cost management, successful product innovation, and continued expansion of its distribution network while navigating a competitive and price-sensitive market.
Price goes above X
Price falls below X
PE goes above X
PE falls below X
| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 801 | 790 | 758 | 871 | 885 | 918 | 852 | 1008 | 1013 | 945 |
| Other Income | 6 | 8 | 6 | 16 | 5 | 13 | 8 | 18 | 9 | 19 |
| Total Income | 807 | 798 | 763 | 888 | 890 | 931 | 859 | 1026 | 1022 | 964 |
| Total Expenditure | 736 | 753 | 702 | 811 | 811 | 856 | 794 | 937 | 944 | 886 |
| Operating Profit | 70 | 45 | 62 | 77 | 80 | 75 | 66 | 89 | 77 | 78 |
| Interest | 22 | 16 | 19 | 23 | 26 | 25 | 20 | 20 | 21 | 21 |
| Depreciation | 15 | 15 | 16 | 18 | 16 | 17 | 16 | 19 | 18 | 18 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6 | 0 |
| Profit Before Tax | 33 | 14 | 27 | 36 | 38 | 33 | 29 | 50 | 33 | 40 |
| Provision for Tax | -1 | 4 | -0 | 6 | 2 | 6 | 2 | 5 | 3 | 8 |
| Profit After Tax | 34 | 10 | 27 | 29 | 36 | 26 | 28 | 46 | 30 | 32 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 34 | 10 | 27 | 29 | 36 | 26 | 28 | 46 | 30 | 32 |
| Adjusted Earnings Per Share | 2.9 | 0.8 | 2.3 | 2.5 | 3 | 2.2 | 2.3 | 3.7 | 2.4 | 2.6 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 1444 | 1645 | 1731 | 1955 | 2396 | 2438 | 1842 | 2072 | 2893 | 3139 | 3432 | 3818 |
| Other Income | 2 | 2 | 13 | 13 | 29 | 8 | 14 | 21 | 45 | 25 | 79 | 54 |
| Total Income | 1446 | 1647 | 1744 | 1967 | 2425 | 2446 | 1855 | 2093 | 2938 | 3164 | 3511 | 3871 |
| Total Expenditure | 1337 | 1497 | 1643 | 1762 | 2191 | 2227 | 1719 | 2510 | 2774 | 2938 | 3218 | 3561 |
| Operating Profit | 109 | 150 | 101 | 205 | 234 | 219 | 136 | -417 | 163 | 226 | 293 | 310 |
| Interest | 47 | 50 | 33 | 36 | 36 | 38 | 47 | 51 | 55 | 79 | 93 | 82 |
| Depreciation | 28 | 33 | 49 | 51 | 50 | 54 | 49 | 54 | 57 | 60 | 67 | 71 |
| Exceptional Income / Expenses | 0 | 0 | -19 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6 |
| Profit Before Tax | 34 | 67 | -1 | 119 | 148 | 127 | 41 | -522 | 51 | 86 | 133 | 152 |
| Provision for Tax | 2 | 19 | -6 | 32 | 27 | 33 | 20 | 10 | -2 | -5 | 14 | 18 |
| Profit After Tax | 32 | 47 | 5 | 87 | 121 | 94 | 21 | -532 | 53 | 91 | 119 | 136 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 32 | 47 | 5 | 87 | 121 | 94 | 21 | -532 | 53 | 91 | 119 | 136 |
| Adjusted Earnings Per Share | 6.7 | 6.7 | 0.6 | 10.4 | 14.4 | 11.2 | 2.5 | -55.9 | 4.5 | 7.6 | 10 | 11 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 9% | 18% | 7% | 9% |
| Operating Profit CAGR | 30% | 0% | 6% | 10% |
| PAT CAGR | 31% | 0% | 5% | 14% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 3% | 30% | 10% | -1% |
| ROE Average | 12% | 10% | -8% | 5% |
| ROCE Average | 14% | 11% | 0% | 7% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 124 | 362 | 625 | 712 | 827 | 911 | 928 | 554 | 808 | 912 | 1023 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 172 | 125 | 70 | 64 | 65 | 48 | 33 | 260 | 255 | 244 | 252 |
| Other Non-Current Liabilities | 28 | 48 | 4 | 3 | -12 | 7 | 10 | 18 | 16 | 26 | 46 |
| Total Current Liabilities | 600 | 486 | 578 | 650 | 560 | 715 | 708 | 563 | 588 | 701 | 711 |
| Total Liabilities | 924 | 1020 | 1278 | 1429 | 1439 | 1681 | 1679 | 1395 | 1668 | 1883 | 2033 |
| Fixed Assets | 291 | 345 | 359 | 426 | 440 | 466 | 473 | 459 | 436 | 466 | 578 |
| Other Non-Current Assets | 97 | 63 | 82 | 43 | 65 | 39 | 20 | 28 | 103 | 113 | 97 |
| Total Current Assets | 536 | 613 | 837 | 960 | 935 | 1177 | 1186 | 908 | 1129 | 1304 | 1358 |
| Total Assets | 924 | 1020 | 1278 | 1429 | 1439 | 1681 | 1679 | 1395 | 1668 | 1883 | 2033 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 3 | 4 | 5 | 41 | 31 | 7 | 22 | 7 | 80 | 14 | 11 |
| Cash Flow from Operating Activities | 88 | 59 | -17 | 19 | 140 | -66 | 100 | -149 | -190 | 102 | 212 |
| Cash Flow from Investing Activities | -29 | -32 | -87 | -16 | -73 | -29 | -47 | -20 | -88 | -53 | -132 |
| Cash Flow from Financing Activities | -58 | -26 | 140 | -12 | -91 | 111 | -69 | 241 | 212 | -53 | -78 |
| Net Cash Inflow / Outflow | 1 | 1 | 36 | -10 | -24 | 15 | -15 | 73 | -66 | -3 | 1 |
| Closing Cash & Cash Equivalent | 4 | 5 | 41 | 31 | 7 | 22 | 7 | 80 | 14 | 11 | 12 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 6.72 | 6.72 | 0.57 | 10.38 | 14.38 | 11.16 | 2.47 | -55.93 | 4.54 | 7.6 | 9.97 |
| CEPS(Rs) | 12.47 | 11.46 | 6.4 | 16.41 | 20.36 | 17.55 | 8.26 | -50.29 | 9.43 | 12.65 | 15.6 |
| DPS(Rs) | 0 | 0 | 0.5 | 0.75 | 1 | 0.5 | 0.5 | 0 | 0 | 0.5 | 1 |
| Book NAV/Share(Rs) | 25.86 | 51.39 | 74.38 | 84.8 | 98.48 | 108.45 | 110.49 | 57.93 | 68.53 | 76.52 | 85.83 |
| Core EBITDA Margin(%) | 7.42 | 9.01 | 5.06 | 9.85 | 8.55 | 8.64 | 6.65 | -20.16 | 3.96 | 6.07 | 5.87 |
| EBIT Margin(%) | 5.62 | 7.07 | 1.86 | 7.91 | 7.66 | 6.77 | 4.75 | -21.66 | 3.55 | 5 | 6.2 |
| Pre Tax Margin(%) | 2.37 | 4.06 | -0.06 | 6.09 | 6.17 | 5.21 | 2.21 | -24 | 1.71 | 2.6 | 3.64 |
| PAT Margin (%) | 2.23 | 2.88 | 0.27 | 4.45 | 5.04 | 3.84 | 1.12 | -24.48 | 1.78 | 2.74 | 3.26 |
| Cash Profit Margin (%) | 4.14 | 4.91 | 3.1 | 7.04 | 7.13 | 6.04 | 3.76 | -22.01 | 3.7 | 4.56 | 5.11 |
| ROA(%) | 3.69 | 4.87 | 0.41 | 6.43 | 8.42 | 6 | 1.23 | -34.64 | 3.48 | 5.1 | 6.07 |
| ROE(%) | 29.51 | 19.48 | 0.96 | 13.04 | 15.7 | 10.79 | 2.25 | -72.01 | 7.86 | 10.56 | 12.28 |
| ROCE(%) | 12.31 | 16.4 | 3.93 | 16.37 | 17.73 | 13.88 | 6.67 | -39.57 | 8.6 | 11.42 | 14.4 |
| Receivable days | 42.25 | 45.13 | 43.34 | 39.85 | 40.4 | 43.58 | 45.82 | 23.85 | 17.93 | 22.77 | 25.24 |
| Inventory Days | 50.82 | 53.72 | 73.91 | 80.9 | 68.62 | 82.03 | 131.56 | 98.46 | 64.26 | 65.64 | 59.79 |
| Payable days | 58.75 | 59.88 | 76.13 | 90.57 | 73.44 | 63.89 | 87.67 | 50.22 | 32.17 | 33.54 | 38.07 |
| PER(x) | 0 | 0 | 402.36 | 24.07 | 18.18 | 5.73 | 42.79 | 0 | 15.99 | 27.38 | 15.03 |
| Price/Book(x) | 0 | 0 | 3.07 | 2.95 | 2.66 | 0.59 | 0.96 | 1.66 | 1.06 | 2.72 | 1.74 |
| Dividend Yield(%) | 0 | 0 | 0.22 | 0.3 | 0.38 | 0.78 | 0.47 | 0 | 0 | 0.24 | 0.67 |
| EV/Net Sales(x) | 0.38 | 0.27 | 1.2 | 1.2 | 1.01 | 0.37 | 0.68 | 0.65 | 0.49 | 0.97 | 0.69 |
| EV/Core EBITDA(x) | 5.11 | 3.01 | 20.63 | 11.38 | 10.37 | 4.16 | 9.18 | -3.24 | 8.72 | 13.46 | 8.11 |
| Net Sales Growth(%) | 32.85 | 13.92 | 5.2 | 12.93 | 22.57 | 1.76 | -24.45 | 12.49 | 39.62 | 8.51 | 9.35 |
| EBIT Growth(%) | 48.12 | 43.33 | -72.34 | 380.63 | 18.67 | -10.09 | -47.05 | -638.99 | 122.55 | 55.59 | 36.58 |
| PAT Growth(%) | 120.81 | 46.91 | -89.95 | 1730.45 | 38.67 | -22.39 | -77.9 | -2671.82 | 110 | 70.11 | 31.13 |
| EPS Growth(%) | 120.87 | -0.07 | -91.56 | 1730.59 | 38.59 | -22.39 | -77.9 | -2367.58 | 108.12 | 67.25 | 31.13 |
| Debt/Equity(x) | 4.4 | 1.07 | 0.42 | 0.41 | 0.29 | 0.44 | 0.41 | 0.94 | 0.73 | 0.64 | 0.6 |
| Current Ratio(x) | 0.89 | 1.26 | 1.45 | 1.48 | 1.67 | 1.65 | 1.67 | 1.61 | 1.92 | 1.86 | 1.91 |
| Quick Ratio(x) | 0.54 | 0.7 | 0.71 | 0.8 | 0.84 | 0.76 | 0.69 | 0.76 | 0.94 | 0.98 | 1.1 |
| Interest Cover(x) | 1.73 | 2.35 | 0.97 | 4.33 | 5.13 | 4.33 | 1.87 | -9.24 | 1.93 | 2.08 | 2.42 |
| Total Debt/Mcap(x) | 0 | 0 | 0.14 | 0.14 | 0.11 | 0.74 | 0.43 | 0.56 | 0.69 | 0.24 | 0.34 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 41.63 | 42.61 | 42.61 | 42.61 | 42.61 | 42.61 | 42.61 | 42.61 | 40.65 | 40.65 |
| FII | 8.83 | 8.95 | 8.51 | 10.08 | 8.2 | 8.46 | 9.23 | 9.91 | 9.25 | 8.77 |
| DII | 8.36 | 8.42 | 8.39 | 6.88 | 6.84 | 6.84 | 6.84 | 6.6 | 6.15 | 5.25 |
| Public | 41.18 | 40.03 | 40.49 | 40.44 | 42.35 | 42.09 | 41.32 | 40.88 | 43.95 | 45.33 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 4.89 | 5.09 | 5.09 | 5.09 | 5.09 | 5.09 | 5.09 | 5.09 | 5.09 | 5.09 |
| FII | 1.04 | 1.07 | 1.02 | 1.2 | 0.98 | 1.01 | 1.1 | 1.18 | 1.16 | 1.1 |
| DII | 0.98 | 1 | 1 | 0.82 | 0.82 | 0.82 | 0.82 | 0.79 | 0.77 | 0.66 |
| Public | 4.83 | 4.78 | 4.83 | 4.83 | 5.06 | 5.03 | 4.93 | 4.88 | 5.5 | 5.67 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 11.74 | 11.94 | 11.94 | 11.94 | 11.94 | 11.94 | 11.94 | 11.94 | 12.51 | 12.51 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | +9% | +18% | +7% | +9% |
| Operating Profit CAGR | +30% | — | +6% | +10% |
| PAT CAGR | +31% | — | +5% | +14% |
| Share Price CAGR | +3% | +30% | +10% | -1% |
| ROE Average | +12% | +10% | -8% | +5% |
| ROCE Average | +14% | +11% | 0% | +7% |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 41.63 | 42.61 | 42.61 | 42.61 | 42.61 | 42.61 | 42.61 | 42.61 | 40.65 | 40.65 |
| FII | 8.83 | 8.95 | 8.51 | 10.08 | 8.2 | 8.46 | 9.23 | 9.91 | 9.25 | 8.77 |
| DII | 8.36 | 8.42 | 8.39 | 6.88 | 6.84 | 6.84 | 6.84 | 6.6 | 6.15 | 5.25 |
| Public | 58.37 | 57.39 | 57.39 | 57.39 | 57.39 | 57.39 | 57.39 | 57.39 | 59.35 | 59.35 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 4.89 | 5.09 | 5.09 | 5.09 | 5.09 | 5.09 | 5.09 | 5.09 | 5.09 | 5.09 |
| FII | 1.04 | 1.07 | 1.02 | 1.2 | 0.98 | 1.01 | 1.1 | 1.18 | 1.16 | 1.1 |
| DII | 0.98 | 1 | 1 | 0.82 | 0.82 | 0.82 | 0.82 | 0.79 | 0.77 | 0.66 |
| Public | 6.85 | 6.85 | 6.85 | 6.85 | 6.85 | 6.85 | 6.85 | 6.85 | 7.42 | 7.42 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 11.74 | 11.94 | 11.94 | 11.94 | 11.94 | 11.94 | 11.94 | 11.94 | 12.51 | 12.51 |
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