Buy Parag Milk Foods; target of Rs 333: Angel Broking

Angel Broking's research report on Parag Milk Foods

Parag Milk Foods (PARAG) is one of the leading dairy products companies in India. The company has been successful in creating strong brands like GO, Gowardhan and in introducing new products like Whey Protein. It has become the 2nd player in processed cheese (after Amul) in a short span of 10 years and commands 33% market share. Rising revenue share of high-margin value added products (VAP) is likely to boost its margins in coming years.

Outlook

We feel that the company should somewhere start enjoying the valuation of FMCG companies. We initiate coverage on the stock with a BUY recommendation and Target Price of `333 (20x FY2020E EPS), an upside of 34% from the current levels. For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.