Target: ₹1,305.50

CMP: ₹1,231.45

Incorporated in 1995, Dodla Dairy Ltd (DDL) is an integrated dairy company in South India that is engaged in the procurement, processing, distribution, and marketing of milk and other dairy products.

The long-term outlook of Indian dairy sector remains positive on account of favourable demographics, increase in expenditure on packaged food, brand awareness, urbanisation and increase in nuclear families, and government support. The growth would be primarily driven by increase in the demand for value-added milk products.

DDL has proven track record and promising growth trajectory ahead of them owing to their expanding procurement network, growing share of margin heavy value-added products, and improving brand visibility. The company’s management enjoys strong reputation within dairy industry.

DDL has been the fastest growing dairy company amongst its peers between FY19-24, both in terms of revenue as well as profitability. The company has the second highest EBITDA margin among peers, only behind market leader Hatsun Agro.

Going forward, the company aims to follow a multi-pronged strategy encompassing expansion of its portfolio in terms of product catalog as well as footprint, with focus on growth in African markets by gaining more market share and by expanding its product reach,strengthening relationships with its farmer partners by growing the Orgafeed business over time.

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