Milky Mist Dairy Food shares slip 4% after sharp post-listing rally
Milky Mist Dairy Food shares came under profit-booking pressure after gaining 42% over two sessions following their market debut. Despite strong revenue growth, improving profitability and a leadership position in value-added dairy, analysts cautioned against chasing the stock after its sharp post-listing rally and premium valuation.
Milky Mist Dairy Food's stock fell 4% on Thursday, following a significant 42% rally over two trading days after its highly anticipated IPO listing.The stock plummeted to a low of Rs 191.25 on the NSE, but then stabilized around Rs 200.The decline occurred after a strong post-listing performance, with the shares initially surging 10% on August 19.The IPO, priced at Rs 140 per share and receiving a staggering 56.12 times subscription, opened at Rs 165 per share.The company's market capitalisation is currently valued at approximately Rs 15,369 crore.The company's impressive financial metrics, including a 33.6% revenue compound annual growth rate (CAGR), improving margins, and 32% return on equity (RoE), have bolstered investor confidence.However, analysts caution that the stock's premium valuation may pose a challenge.
At around 85 times FY26 earnings, it trades at a substantial premium to the dairy sector's average P/E of 52.5 times.As a result, experts advise investors to hold the stock, set a stop-loss at Rs 150, and consider adding shares during market dips rather than buying aggressively at the current level.
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