Motilal Oswal is bullish on Parag Milk Foods has recommended buy rating on the stock with a target price of Rs 305 in its research report dated May 13, 2019.
Motilal Oswal's research report on Parag Milk Foods
INR6b) in 4QFY19. Milk Products continued growing robustly by 24.7% YoY to INR4.2b. Adjusting for one-offs, EBITDA increased 6.1% YoY to INR587m (our estimate: INR616m), while PAT was up 62.7% YoY to INR425m (our estimate: INR274m). EBITDA margin contracted 200bp YoY to 8.7% in the quarter.
We value PARAG at 15x FY21E EPS (at ~65% discount to our consumer staples universe) to arrive at a one-year TP of INR305 (30% upside). Maintain Buy.
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