India's Parag Milk Foods slumps on Q4 profit fall

Parag Milk Foods

21/05/2024 09:33

** Shares of Parag Milk Foods  PAMF.NS  down 11.7% to 189.4
rupees, its lowest since Sept. 2023 
    ** The consumer goods co's Q4 consol pre-tax profit fell
18%, rev from ops fell 1.4% 
    ** Stock on track to log steepest one-day pct slump since
Dec. 2020
    ** Brokerage Investec says PAMF's earnings missed its
estimates on lower gross margins and higher operating expenses 
    ** Parag significantly raised advertising and promotion
expenses in fiscal year 2024, leading to higher operational
costs and affected core profit margins - Investec 
    ** PAMF's core profit margin contracted to 5.6% in Q4 from
5.7% a year ago 
    ** Investec has a "Buy" rating on stock, with PT of 310
rupees
    ** Stock eyes busiest trading session since early Feb.,
volumes at 5.9x the 30-day avg 
    ** Including session's gains, stock down ~19% YTD 


 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))