ICICI Securities sees revenue growth for dairy sector on better volumes

Hatsun Agro Product

15/12/2022 08:15

** ICICI Securities sees strong revenue growth for dairy
sector due to higher prices and likely better volumes
    ** Maintains "buy" rating on Heritage Foods  HEFI.NS , Dodla
Dairy  DODL.NS  and "hold" on HatsunAgro  HAPL.NS  and ParagMilk
Foods  PAMF.NS 
    ** Dairy companies have raised the selling price of milk by
8-10% in the past ten months due to sustained rise in
procurement prices - ICICI Securities
        ** Analysts note dairy firms need to raise prices again
in second half of FY23 and focus on increasing the share of
Indian value-added products to protect profitability
    ** Sees rising milk procurement prices to hurt margins in H2
FY23, but remains positive on the performance of the dairy
sector, given strong return ratios and the sector's migration to
becoming organized 
    ** At 01:33 p.m. IST, DODL was up 0.6%, HEFI down 0.3%,
while PAMF was flat. HAPL was down 1.3%
 (Reporting by Priya Sagar in Bengaluru)
 ((Priya.Sagar@thomsonreuters.com;))