Dairy sector likely to see higher profit, margins in H2 - ICICI Securities

ICICI Securities

28/11/2023 09:35

** ICICI Securities expects margins for Indian dairy cos to
rise in H2FY24E–FY25E, post FY23–H1FY24E weakness
    ** Sees cos reporting EBITDA margin expansion in H2FY24 on
lower raw material prices and benefit of carry-over of price
hikes
    ** Costs for Indian farmers will likely reduce with stable
cattle feed prices - ICICI Securities
    ** Says it remains positive on dairy sector on growth
triggers like higher consumption of margin-accretive value-added
products 
    ** Adds, milk procurement prices to remain stable in H2FY24
due to commencement of flush season, normal monsoon and
weakening impact of lumpy skin disease
    ** Prefers Heritage Foods  HEFI.NS  and Dodla Dairy 
 DODL.NS  with "buy" and keeps "hold" rating on Hatsun  HAPL.NS 
    

 (Reporting by Sethuraman NR in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))