Shares of Milky Mist Dairy Food Ltd. experienced a significant rally on Friday, extending their gains for the second consecutive session by hitting a 5% upper price band of Rs 293.30 on the BSE. The stock has seen a substantial increase of 36.51% over the past two weeks, fueled by robust Q1 FY27 earnings and growing investor interest in the company's expansion into high-protein dairy segments.
Amidst this upward movement, both the BSE and NSE have placed Milky Mist's securities under the short-term Additional Surveillance Measure (ASM) framework. This measure is implemented by exchanges to alert investors about unusual price movements and heightened volatility, urging caution in trading decisions.
Analyst Perspectives on Milky Mist's Trajectory
Ravi Singh, Chief Research Officer at Master Capital Services, noted that Milky Mist's stock reached a new peak, extending its recent strong rally. He attributes this to increasing investor interest in the company's foray into high-protein dairy products, a segment expected to grow by 50-60% annually. The company is actively introducing new high-protein paneer and anticipates whey protein growth to surpass earlier projections. Singh also highlighted improved investor sentiment due to expectations surrounding a new manufacturing plant in Tamil Nadu, which is poised to support capacity expansion and future growth. He set a near-term upside target of Rs 320 for the stock, with a suggested stop loss at Rs 265.
Conversely, AR Ramachandran, a Sebi-registered research analyst at Tips2trades, advised investors to consider booking profits at current levels. Ramachandran views Milky Mist as bullish but currently overbought on daily charts, identifying the next resistance at Rs 317. He cautioned that a daily close below the support level of Rs 272 could trigger a fall towards Rs 227 in the near term.
Strong Q1 FY27 Financial Performance
Milky Mist reported impressive financial results for Q1 FY27, with revenue reaching Rs 973.4 crore, marking a 43.6% year-on-year (YoY) increase. This growth was primarily driven by strong performances across its key product categories:
- Paneer revenue rose 34% YoY.
- Cheese revenue increased by 38%.
- Curd revenue saw a 27% increase.
- Yogurt revenue jumped significantly by 153%.
- Ice cream revenue grew by 60%.
The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged by 77% YoY to Rs 143.8 crore, with the EBITDA margin expanding to 14.8% from 12% in the previous year. Gross margin also improved by 275 basis points to 34.2%. Profit After Tax (PAT) stood at Rs 64.7 crore, a substantial increase compared to Rs 6.5 crore in Q1 FY26, while finance costs declined by 29% to Rs 24 crore.