Dodla Dairy
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Dodla Dairy is navigating a challenging cost environment, with management highlighting elevated milk procurement costs that have pressured margins despite achieving record-high revenues. The company's strategic focus on expanding its high-margin Value-Added Products (VAP) portfolio and its footprint in Africa is expected to drive revenue growth in the low to mid-teens over the next fiscal year. Management anticipates a gradual recovery in gross margins, supported by normalizing procurement costs and effective pricing strategies. The ongoing capacity expansions, including a new integrated dairy plant in Maharashtra and a greenfield facility in Uganda, are pivotal for long-term growth. However, risks such as sustained commodity price inflation and competitive pressures remain. Vista's financial outlook reflects stable revenue growth, with margins under pressure but expected to recover gradually. The favorable macro environment in India, characterized by improving manufacturing activity and contained inflation, supports Dodla's growth trajectory. Over the next 12-24 months, key opportunities include scaling the VAP portfolio and expanding in Africa, while watchpoints include input cost volatility and competitive dynamics in the FMCG sector
Why We Like This Stock
- Strategic expansion of the high-margin Value-Added Products portfolio is expected to enhance revenue and margins
- Growth in the African market is projected to contribute significantly to overall revenue, targeting 15-18% by FY28
- Management's disciplined capital allocation and operational efficiency initiatives are likely to support long-term profitability
Things To Watch Out For
- Elevated milk procurement costs and input inflation pose ongoing risks to margins and profitability
- Competitive pressures in the FMCG sector may impact market share and pricing strategies
- Operational variability and seasonal demand fluctuations could affect the growth of the Value-Added Products segment
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,125 | 3,720 | 4,125 | 4,370 | 4,851 |
| Profit Before Tax (Cr.) | 239 | 346 | 283 | 191 | 261 |
| PBT Margin | 7.7% | 9.3% | 686.1% | 4.4% | 5.4% |
| Net Profit (Cr.) | 164 | 250 | 205 | 138 | 188 |
| Earnings Per Share | 27.2 | 41.7 | 33.9 | 22.9 | 31.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ► Add | 1,118 | 27-Jul-2026 |
| Moneycontrol | ▲ Overweight | nan | 20-Apr-2026 |
Company Overview
Show Company Profile
Dodla Dairy Limited, together with its subsidiaries, engages in the production and sale of milk and value-added dairy products in India and internationally. The company offers flavoured, toned, standardized, full cream, ultrahigh temperature processed (UHT)-toned, UHT cow, and UHT-double toned milk; and milk products, such as butter milk, lassi, ghee, paneer, cheese, curd, flavored milk, yoghurt, butter, ice cream, and sweets. It also engages production and sale of cattle feed. The company was incorporated in 1995 and is based in Hyderabad, India.