Systematix begins coverage of India's Dodla Dairy with 'buy'

Dodla Dairy

23/03/2023 09:08

** Brokerage Systematix Institutional Equities begins
coverage of India's Dodla Dairy  DODL.NS  with 'buy' rating and
PT of 660 rupees
    ** Says co should see strong pick up in earnings once the
milk cycle turns up, boosting production, which it expects from
mid-FY24
    ** Says efficient operations and product mix drive strong
cash generation for co
    ** Says co has taken steps to maintain farmer relations and
build on-ground team necessary to support distribution expansion
    ** Adds that processing capabilities have moved up in line
with emphasis on automation and process efficiencies
    ** Brokerage expects co to post average annual revenue
growth of 19.6% over FY22-25 and finds the valuations favourable
    ** Shares of dairy products retailer rise as much as 2.6% to
460 rupees
    ** Stock had fallen 8.1% last year

 (Reporting by Varun Vyas in Bengaluru)
 ((varunvyas.hebbalalu@thomsonreuters.com;))