Dairy Products IPOs in India refer to the public offerings of shares by companies involved in dairy farming, milk processing, and dairy product manufacturing. These IPOs offer investors the opportunity to invest in the growing dairy industry, which caters to rising demand.
Content:
- Overview of the Dairy Products IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Dairy Products Sector IPOs
- Disadvantages of Investing in Dairy Products Sector IPOs
- Role of Dairy Products Industry in the Economy
- How to invest in Dairy Product IPOs?
- Future Outlook of Dairy Product IPOs in India
- Dairy Products IPOs in India – FAQ
Overview of the Dairy Products IPOs in India
Dairy Products IPOs in India involve companies offering shares to the public in the dairy sector, which includes the production and distribution of milk, curd, butter, cheese, and other dairy products. These companies cater to both domestic and international markets.
With India’s increasing demand for dairy products, these IPOs present opportunities for investors to back businesses benefiting from a growing consumer base. The sector’s expansion, driven by rising health awareness and consumption trends, makes Dairy Products IPOs attractive for long-term growth prospects in the Indian market.
IPO Fundamental Analysis
Dindigul Farm Product Limited
Dindigul Farm Product Ltd’s financial results for FY24 show a rise in sales to ₹85.53 crore from ₹28.32 crore in FY22. The net profit increased to ₹8.74 crore in FY24 compared to a loss in FY22.
Revenue Trend: Sales increased to ₹85.53 crore in FY24 from ₹81.58 crore in FY23, and ₹28.32 crore in FY22, reflecting strong growth in the last two years, especially compared to FY22.
Equity and Liabilities: Equity capital rose to ₹17.98 crore in FY24 from ₹14.38 crore in FY22. Total liabilities increased to ₹54.09 crore in FY24, up from ₹24.97 crore in FY22.
Profitability: Operating profit increased to ₹12.95 crore in FY24, up from ₹9.28 crore in FY23. OPM improved to 15.14%, compared to a negative OPM of -5.37% in FY22, showing significant improvement.
Earnings Per Share (EPS): EPS rose to ₹4.86 in FY24 from ₹35.95 in FY23, but it was a loss of ₹28.99 in FY22, reflecting the company’s improved profitability.
Return on Net Worth (RoNW): RoNW improved significantly in FY24, showing positive profitability, reversing the negative performance of FY22 when reserves were negative. In FY24, reserves stood at ₹-7.64 crore.
Financial Position: Total assets increased to ₹54.09 crore in FY24, up from ₹24.97 crore in FY22, mainly due to growth in other assets, which rose to ₹41.81 crore in FY24 from ₹12.74 crore in FY22.
Healthy Life Agritec Limited
Healthy Life Agritec Ltd financial results show a significant increase in sales to ₹133 crore in FY24, up from ₹34 crore in FY22. Net profit rose to ₹3 crore in FY24, compared to ₹1 crore in FY22.
Revenue Trend: Sales grew to ₹133 crore in FY24, a jump from ₹108 crore in FY23 and ₹34 crore in FY22, indicating steady growth over the past two years.
Equity and Liabilities: Equity capital remained steady at ₹22 crore in FY24, the same as FY23, while total liabilities increased to ₹34 crore in FY24, up from ₹15 crore in FY22.
Profitability: Operating profit improved to ₹4 crore in FY24, with OPM at 3%, compared to ₹2 crore (2% OPM) in FY23 and ₹1 crore (-4% OPM) in FY22.
Earnings Per Share (EPS): EPS increased to ₹1.14 in FY24 from ₹0.69 in FY23 and ₹0.81 in FY22, reflecting better profitability.
Return on Net Worth (RoNW): RoNW stood at 9.78% in FY24, showing an improvement in profitability compared to earlier years, with reserves rising to ₹5 crore in FY24 from ₹1 crore in FY22.
Financial Position: Total assets grew to ₹34 crore in FY24, up from ₹15 crore in FY22, mainly due to the increase in other assets, which rose to ₹31 crore in FY24 from ₹13 crore in FY22.
Dodla Dairy Limited
Dodla Dairy Ltd’s financial results show robust growth, with sales reaching ₹3,125 crore in FY24, up from ₹2,243 crore in FY22. Net profit increased to ₹167 crore in FY24 from ₹133 crore in FY22.
Revenue Trend: Sales rose to ₹3,125 crore in FY24 from ₹2,812 crore in FY23 and ₹2,243 crore in FY22, reflecting steady growth in the past two years.
Equity and Liabilities: Equity capital remained at ₹59 crore, while total liabilities increased to ₹1,478 crore in FY24, up from ₹1,088 crore in FY22, driven by increased borrowings and other liabilities.
Profitability: Operating profit grew to ₹290 crore in FY24, with OPM improving to 9%, compared to ₹193 crore (7% OPM) in FY23 and ₹212 crore (9% OPM) in FY22.
Earnings Per Share (EPS): EPS increased to ₹28.03 in FY24, up from ₹20.55 in FY23 and ₹22.32 in FY22, reflecting improved profitability.
Return on Net Worth (RoNW): RoNW stood at 15.5% in FY24, an improvement from previous years, driven by higher reserves, which grew to ₹1,079 crore in FY24 from ₹784 crore in FY22.
Financial Position: Total assets grew to ₹1,478 crore in FY24, up from ₹1,088 crore in FY22, with significant investments and other assets contributing to the increase.
IPO Financial Analysis
Dindigul Farm Product Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 85.53 | 81.58 | 28.32 |
| Expenses | 72.58 | 72.3 | 29.84 |
| Operating Profit | 12.95 | 9.28 | -1.52 |
| OPM % | 15.14% | 11.38% | -5.37% |
| Other Income | 0.03 | 0.42 | 1.86 |
| Interest | 3.19 | 2.59 | 2.47 |
| Depreciation | 2.13 | 1.94 | 2.03 |
| Profit before tax | 7.66 | 5.17 | -4.16 |
| Tax % | -14.10% | 0.00% | 0.00% |
| Net Profit | 8.74 | 5.17 | -4.17 |
| EPS in Rs | 4.86 | 35.95 | -28.99 |
*All values in ₹ Cr.
Healthy Life Agritec Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 133 | 108 | 34 |
| Expenses | 129 | 106 | 33 |
| Operating Profit | 4 | 2 | 1 |
| OPM % | 3% | 2% | 4% |
| Other Income | 0 | 0 | 0 |
| Interest | 0 | 0 | 0 |
| Depreciation | 0 | 0 | 0 |
| Profit before tax | 3 | 2 | 1 |
| Tax % | 25% | 28% | 26% |
| Net Profit | 3 | 2 | 1 |
| EPS in Rs | 1.14 | 0.69 | 0.81 |
*All values in ₹ Cr.
Dodla Dairy Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 3,125 | 2,812 | 2,243 |
| Expenses | 2,835 | 2,619 | 2,031 |
| Operating Profit | 290 | 193 | 212 |
| OPM % | 9% | 7% | 9% |
| Other Income | 26 | 22 | 13 |
| Interest | 3 | 2 | 7 |
| Depreciation | 70 | 61 | 52 |
| Profit before tax | 244 | 152 | 166 |
| Tax % | 32% | 19% | 20% |
| Net Profit | 167 | 122 | 133 |
| EPS in Rs | 28.03 | 20.55 | 22.32 |
*All values in ₹ Cr.
About the Company
Dindigul Farm Product Limited
Dindigul Farm Product Limited, established in 2010, specializes in processing whole and skimmed milk into premium dairy ingredients such as milk protein concentrates, whey protein, and infant milk formula powders. Operating under the brands ENNUTRICA and Activday, it serves diverse industries.
With a 15-acre processing unit in Dindigul, the company partners with over 4,000 farmers through 150 village collection centers. Compliant with FSSAI, Halal, and Kosher standards, it boasts a domestic presence in 15 states and exports to 3 countries.
Healthy Life Agritec Limited
Healthy Life Agritec Limited, established in 2019, focuses on trading raw milk, chicken, and agro products in Maharashtra and Karnataka. It collaborates with procurement partners to source milk from farmers and supply it to wholesalers under its “Healthy Life” brand.
The company offers diverse products, including milk powder, cheese, paneer, ghee, and juices, along with poultry products sourced from regional growers. Certified with ISO 9001:2015, it ensures quality standards while catering to the needs of wholesalers across both states.
Dodla Dairy Limited
Dodla Dairy Limited, established in 1995, is a leading integrated dairy company in South India. It specializes in the procurement, processing, distribution, and marketing of milk and dairy products like curd, butter, ghee, and ice cream under multiple brand names.
The company operates 13 processing plants and serves key Indian markets, including Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, and Maharashtra. It also exports to Uganda and Kenya, supported by a robust distribution network with 40 sales offices and over 3,300 distribution agents.
Advantages of Investing in Dairy Products Sector IPOs
The main advantage of investing in Dairy Products Sector IPOs is the sector’s steady demand, driven by the essential nature of dairy products in everyday life. The growth potential and long-term market stability make it an attractive investment opportunity.
- Steady Demand: Dairy products have a consistent consumer base, making them less vulnerable to market fluctuations. This provides stability for investors, as demand remains strong even in economic downturns.
- Growing Market: With increasing health consciousness, the demand for value-added dairy products like organic milk and probiotic drinks is rising, which fuels industry growth. Investors can benefit from this expanding market segment.
- Strong Growth Potential: The dairy industry is seeing innovations in product offerings and distribution channels, enhancing growth prospects. Companies in this sector are likely to experience consistent expansion, offering long-term returns for investors.
- Favorable Government Policies: The Indian government has introduced policies to support the dairy industry, such as subsidies and regulatory ease. This creates a favorable environment for growth, benefiting investors in the sector.
Disadvantages of Investing in Dairy Products Sector IPOs
The main disadvantage of investing in Dairy Products Sector IPOs is the sector’s vulnerability to raw material price fluctuations, regulatory changes, and market competition. Additionally, environmental concerns related to dairy farming may impact long-term sustainability, creating uncertainty for investors.
- Raw Material Fluctuations: The prices of feed and raw milk can be volatile, affecting the profitability of dairy companies. This unpredictability can result in poor returns for investors, especially during periods of price instability.
- Regulatory Challenges: The dairy industry is subject to strict regulations concerning health standards, production methods, and distribution. Frequent policy changes may disrupt operations and impact the financial stability of dairy companies.
- Environmental Concerns: Dairy farming has significant environmental impacts, including methane emissions and water consumption. Increasing pressure for sustainability may lead to higher operational costs or stricter regulations, negatively impacting the profitability of companies in the sector.
- Intense Competition: The dairy sector is highly competitive with numerous players, both large and small. New entrants or aggressive pricing strategies by competitors could reduce market share, impacting the financial performance of established companies and potentially diminishing investor returns.
Role of Dairy Products Industry in the Economy
The dairy products industry plays a vital role in the economy by contributing to employment, particularly in rural areas. It supports millions of farmers, processors, and distributors, driving economic growth through the production and sale of milk, cheese, and other dairy goods.
In addition to providing essential nutrition, the dairy industry boosts trade and export opportunities. With growing demand for dairy products both domestically and globally, the sector’s contribution to GDP and its role in sustainable agricultural practices help strengthen food security and rural development.
How to invest in Dairy Product IPOs?
To invest in Dairy Product IPOs, follow these steps:
- Open a Demat and Trading Account: Choose a brokerage platform like Alice Blue.
- Research IPO Details: Review the company’s prospectus, pricing, and performance.
- Place Your Bid: Log in to the brokerage account, select the IPO, and bid as per your preferences.
- Monitor and Confirm Allocation: If allocated, your shares will be credited to your Demat account after listing.
Future Outlook of Dairy Product IPOs in India
The future outlook for dairy product IPOs in India appears promising, driven by increasing consumer demand for milk and dairy products. As more companies expand their operations and innovate in dairy-based products, IPOs are expected to attract significant investor interest.
With the growth of the dairy sector and a shift towards healthier, premium products, IPOs from dairy companies could become lucrative investments. The sector’s ability to tap into both urban and rural markets, alongside sustainable practices, is likely to create a robust investment environment.
Dairy Products IPOs in India – FAQ
A Dairy Products IPO refers to the initial public offering of shares by a company in the dairy industry, offering investors an opportunity to buy equity stakes in the company. It allows the company to raise capital for expansion and growth.
Major Dairy Product companies in India that have launched IPOs include Dindigul Farm Product Limited, Healthy Life Agritec Limited, and Dodla Dairy Limited. These companies raised capital to expand their operations in the competitive dairy industry.
Dairy Products IPOs offer investors an opportunity to invest in a growing sector with stable demand. These IPOs enhance liquidity, help raise funds for expansion, and provide better visibility for dairy companies in the market.
Dodla Dairy Limited holds the distinction of being the largest Dairy Products IPO in India, raising significant capital. Its IPO provided a boost to the dairy industry by offering growth prospects, infrastructure, and a wider market reach.
To invest in Dairy Products IPOs, open a Demat account with a brokerage platform like Alice Blue. Research the IPO thoroughly, fill out the application form, and submit your bid either online or offline during the IPO subscription period.
Dairy Products IPOs can be suitable for long-term investments due to the consistent demand for dairy products in India. However, the investor should assess the company’s fundamentals, growth potential, and market conditions before making long-term investment decisions.
Dairy Products IPOs can be profitable depending on market conditions and the company’s performance. Investors should analyze financials, growth prospects, and competitive positioning before investing to maximize returns from IPOs in the dairy sector.
While several dairy companies have launched IPOs, it’s essential to stay updated with financial news and the stock market to find out about upcoming Dairy Products IPOs in India. Regulatory filings and announcements will provide specific details.
Detailed reviews and analysis of Dairy Products IPOs can be found on platforms like Alice Blue. They offer insights on IPO performance, financials, industry outlook, and expert opinions to help investors make informed decisions before investing.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
