Prab­hat Dairy

Flash News Investment - - RECOMMENDATIONS -

{Ticker : 539351 BUY: ₹148 Tar­get: ₹169 Prab­hat Dairy is en­gaged in pro­cure­ment and pro­cess­ing of milk and sale of milk prod­ucts which in­cludes ghee, flavoured milk, skimmed milk pow­der, whole milk pow­der and con­densed milk. The com­pany is plan­ning to in­crease its B2C share from the present 30 per cent to 50 per cent by FY20. This will im­prove the ca­pac­ity util­i­sa­tion of the com­pany in its value-added prod­ucts seg­ment (Pa­neer, cheese, ice-cream). It will be in­tro­duc­ing new prod­ucts and will foray into new ge­o­graph­i­cal lo­ca­tions like Tier II and Tier III cities with a tar­get to dou­ble its re­tail rev­enue from the cur­rent level. Due to favourable mon­soon this year, the milk pro­cure­ment prices are likely to re­duce go­ing for­ward, which will en­hance its prof­itabil­ity. The man­age­ment aims to gen­er­ate rev­enue of Rs 2000 crore in the next two years. Thus, we rec­om­mend our read­ers to BUY this scrip.

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