Milky Mist Dairy Food share price extended rally to hit 10% upper circuit after making a strong debut in the Indian stock market on Tuesday. Milky Mist IPO listing date was today, and the stock has been listed on BSE and NSE.
Milky Mist share price was listed at Rs 165.00 on BSE and NSE, a premium of 17.85% to the issue price of Rs 140 per share.
After the robust debut, the stock extended gains and was locked in an upper circuit of 10% at Rs 181.50 apiece on NSE. At this level, Milky Mist shares were up by nearly 30% from their issue price.
ALSO READ: Milky Mist Makes Strong Market Debut; Shares List At 17.8% Premium To Issue Price
Milky Mist Dairy Food IPO listing was better than Street estimates, as indicated by the grey market premium (GMP). Ahead of the debut, Milky Mist IPO GMP today was nearly Rs 20 per share, signalling a listing gain of more than 14% from its issue price.
Should investors buy, sell or hold Milky Mist shares after listing?
Milky Mist Dairy Food Ltd. is a leading value-added dairy products company with a strong focus on premium dairy and adjacent packaged food categories. The company boasts 19% market share in packaged paneer, and holds leading positions across cheese, curd and yogurt.
Shivani Nyati Head of Wealth, Swastika Investmart Ltd. Noted that the company’s strong 33.6% revenue CAGR, expanding margins and ~32% RoE, along with its leadership in the value-added dairy segment, support its premium positioning.
Temasek-backed Jongsong Investments invested Rs 482 crore in the pre-IPO round at Rs 139.76 per share for a ~5.2% stake, provides additional validation to the company’s growth prospects and IPO valuation.
“However, at around 85x FY26 earnings, valuations remain significantly higher than the dairy sector average of ~52.5x P/E. While the premium is supported by its FMCG-like margins and value-added product mix, the strong listing may lead to some profit-booking. Our view remains positive on the business, but investors should avoid chasing Milky Mist Dairy Food stock at current levels,” said Nyati.
She recommends ‘Hold’ on Milky Mist Dairy Food shares with a stop-loss of Rs 150, and to consider adding the stock on meaningful dips.
DAM Capital has initiated its coverage on Milky Mist Dairy Food shares with a ‘Buy’ rating and a target price of Rs 175 pre share, implying an upside of 25% from Milky Mist IPO issue price of Rs 140 per share.
The brokerage firm noted that Milky Mist is India’s only scaled pure-play value-added dairy company, with best-in-class margin structure, defended through a difficult cost cycle.
The Rs 1,553 crore worth Milky Mist Dairy Food IPO was open from August 11 to 13. The issue comprised a fresh issue of 10.20 crore equity shares aggregating to Rs 1,428 crore, and offer for sale (OFS) of 89.28 lakh shares worth Rs 125 crore. Milky Mist Dairy Food IPO issue price was set at Rs 133 to Rs 140 per share.
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