Milky Mist shares hit another 10% upper circuit, rallying 43% from IPO price. Should you buy, sell or hold?
Milky Mist shares hit another 10% upper circuit on Wednesday, taking their gains to 42.5% from the IPO price of Rs 140. Analysts remain positive on the company’s strong foothold in value-added dairy products, improving margins and growth prospects, but caution that valuations are elevated. Existing investors have been advised to hold and accumulate on meaningful dips.
On Wednesday, the shares of Milky Mist Dairy Food hit another 10% upper circuit, rallying 43% from its IPO price. The stock, which opened at Rs 190 on the BSE, surged to a daily high of Rs 199.55, marking a 9.98% intraday gain. This represents a 42.5% increase from the IPO price of Rs 140. The company's strong performance is attributed to its substantial market presence in value-added dairy products, including private branded paneer, cheese, and yogurt, boasting market shares of 19%, 12%, 5%, and 13% respectively.
With a solid footing in the industry, the company's robust financials, including a 33.6% revenue CAGR, expanding margins, and nearly 32% return on equity, further support its premium positioning. However, the stock's valuation remains relatively high, trading at about 85 times FY26 earnings compared to the dairy sector average P/E of 52.5 times.
Experts suggest that while the long-term business case appears strong, existing investors should consider holding with a stop-loss at Rs 150 and look for buying opportunities during significant dips.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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