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Parag Milk Foods Stock Analysis

Parag Milk Foods Detail

Parag Milk Foods is in portfolio of Ashish Kacholia. He is one of the top investors in India. The company belongs to Food Processing (Milk products) sector.

As per the Company website it is one of India’s leading private sector dairy company. The product portfolio of Company includes ghee,fresh milk, skim milk powder, whole milk powder, paneer, an array of processed and natural cheese, cheese spreads, butter, dahi, dairy whitener and gulab jamun mix under the brand names of ‘Gowardhan’ and ‘Go’ ,all made from 100% fresh cow milk.

Below are the brands from the Company along with products sold under those brands

Below are different plants and their capacities as per this writing.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

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Parag Milk Foods Stock Performance

The stock got listed in year 2016 at listing price of 245 INR. Soon after listing it had decent run touching 350 INR thus giving excellent return to investors. It had major correction post that run in year 2017 and again touched 350 INR in year 2018.

The Stock is fluctuating between 350 and 200 price range touching both prices two times in this long term chart. Majority of time is spend in and around 250 INR. The volatility of stock is one thing to be worry of as it has fluctuated too much both ways in past two years.

Parag Milk Foods My Opinion

Parag Milk Foods is a Food Processing (Milk based) Company. The sector is good. There are various reasons of it. Milk as a food is complete food. Most of the Indian consume Milk in one way or other. Either they take milk or they take milk products. Milk is part of Indian Kitchen and diet.

So there is huge market potential in this field.As of this writing Milk is highly unorganized sector. Only in recent times people have started taking packaged milk. Earlier local players were more dominant. They still are dominant in smaller towns and cities.

The sector is poised to grow and will continue to grow in future as well. With improving economic condition consumption of essential food items will increase. Also rising population and increase in market share of packaged food will also see the growth. But Milk and milk products have less shelf life. This is concern area for Companies operating in this sector.

I am bullish on the sector but have not invested in it as of now. I am comparing the Companies in this sector and is shortlisting the promising ones from others. If they have better growth potential than the ones I have in portfolio I will make the decision.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.