Investor Nikhil Vora loads up on Parag Milk, shares gain 8%

In Q4, the company's total income increased by 41.43 percent to Rs 810 crore. Parag Milk Foods recorded a net profit of Rs 22.35 crore for the quarter as against a loss of Rs 591.78 crore in Q4 FY22. Representative Image

Parag Milk Foods Ltd. shares gained close to 8 percent on June 26 on the back of veteran investor Nikhil Vora upping his stake in the company. At 11 am, the stock was quoting at Rs 130.10 on the NSE.

On June 23, Vora’s Sixth Sense Fund purchased additional 6.8 lakh shares of the company. As of March end, Sixth Sense already had around 45 lakhs of fully paid-up equity shares, amounting to 3.8 percent of the company.

Parag Milk Foods is currently one of the top 5 producers of cheese in the country. The company’s key clients includes Domino's, Pizza Hut, and Papa John's. As per the company’s investor presentation, it has a milk processing capacity of 3.4 million litres per day.

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Their ghee and cheese categories have expanded by 43.5%, while their most lucrative product, Avvatar, has grown by 123% year on year and has doubled their protein business.

The financials

In Q4, their total income increased by 41.43 percent to Rs 810 crore. Parag Milk Foods recorded a net profit of Rs 22.35 crore for the quarter as against a loss of Rs 591.78 crore in Q4 FY22.

Parag Milk Foods' brands include Gowardhan in the ghee sector, Go Cheese in the cheese sector, and Avvatar in the whey sector. They anticipate the sizes of these sectors to grow to 1,23,000 crore, 20,000 crore, and 2,000 crore, respectively, by 2026.