South India-based integrated dairy company Dodla Dairy share price ended with more than 15 percent gain at Rs 609.10 on June 28, first day of the listing.
The stock opened with a 28.50 percent premium at Rs 550 on the NSE against issue price of Rs 428, while it listed with a 23.36 percent premium at Rs 528 on the Bombay Stock Exchange.
The share traded with a volume of 2.44 crore equity shares on the NSE and 23.65 lakh shares on the BSE.
Incorporated in 1995, Dodla Dairy, which has a significant presence in the southern region of India, with operations primarily across the five Indian states of Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Maharashtra, successfully raised Rs 520.17 crore from investors during June 16-18, 2021.
The company primarily derives all of its revenue from the sale of milk (around 75 percent of 9MFY21 revenue) and dairy based VAPs (value added products) in the branded consumer market, having 13 processing plants with an aggregate installed capacity of 1.70 million litres of raw milk per day (MLPD).
The company will utilise net proceeds from fresh issue for repayment of certain borrowings and working capital requirements.
"The dairy & milk products industry are expected to grow at 10-11 percent CAGR over FY21 to FY25 as the economic growth & demand is expected to gradually pick up," said Geojit.
Its revenue grew by around 16 percent CAGR while earnings before interest, tax, depreciation and amortisation (EBITDA) grew at a CAGR of 12 percent over FY18-20.
Despite cumulative capital expenditure of Rs 264.5 crore over the past 3 years, return on equity (RoE) and return on capital employed (RoCE) for FY20 were healthy at 11.5 percent and 17.0 percent respectively. Further, it has a lean balance sheet with debt/equity ratio of 0.2x as on 9MFY21.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.