Milkfood Ltd Stock Analysis

BSE: 507621 | NSE: | Consumer Food | Small Cap

BSE Share Price 27-Jan-2023 18:01
621.10 -8.90 (-1.41%)

DeciZen - Make an Informed Decision on Milkfood

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Milkfood Price Chart

P/E Ratio ( SA) :
53.15
Market Cap :
303.5 Cr.
52-wk low :
286
52-wk high :
673
Bole Toh?

1. Is Milkfood Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Milkfood Ltd is a average quality company.

2. Is Milkfood Ltd undervalued or overvalued?

The key valuation ratios of Milkfood Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Milkfood Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Milkfood Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Milkfood:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Milkfood Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 7.5%7.8%6.5%7.9%6.4%9%9.5%7.9%4.3%4.4%-
Value Creation Index -0.5-0.4-0.5-0.4-0.5-0.4-0.3-0.4-0.7-0.7-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 335431371373389491531551368316367
YoY Gr. Rt. %-28.4%-13.9%0.5%4.3%26.3%8.1%3.9%-33.3%-14.1%-
Adj EPS 1.32.221.92.316.721.21757.111.7
YoY Gr. Rt. %-64.2%-7.7%-6.4%22.1%619.8%27%-19.8%-70.8%43.4%-
BVPS (₹) 66.468.870.872.7184.8200.8221.5238.6243.4250.9256.7
Adj Net Profit 0.71.110.91.18.210.48.32.43.56
Cash Flow from Ops. 19.921.85.740.526.627.333.919.613.314.2-
Debt/CF from Ops. 4.33.714.62.33.22.61.73.85.55.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -0.7%-4.1%-15.9%-14.1%
Adj EPS 20.4%25.1%-30.5%43.4%
BVPS 15.96.34.33.1
Share Price 23% 10.9% 2.6% 68.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 23.32.92.71.88.7107.42.12.94.6
Op. Profit Mgn % 4.944.35.75.55.45.34.55.44.14.2
Net Profit Mgn % 0.20.30.30.30.31.721.50.71.11.6
Debt to Equity 2.72.42.42.70.90.70.50.60.60.60.5
Working Cap Days 114941191079071697411813785
Cash Conv. Cycle 5345545759403034556723

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 4.60%

Debt to equity has declined versus last 3 years average to 0.59

Sales growth is good in last 4 quarters at 13.67%

Sales growth has been subdued in last 3 years -15.85%

Net Profit has been subdued in last 3 years -30.52%

Latest Financials - Milkfood Ltd.

Standalone Consolidated
TTM EPS (₹) 11.7 11.7
TTM Sales (₹ Cr.) 367 367
BVPS (₹.) 256.7 256.6
Reserves (₹ Cr.) 121 121
P/BV 2.42 2.42
PE 53.15 53.05
From the Market
52 Week Low / High (₹) 286.00 / 673.00
All Time Low / High (₹) 4.00 / 678.85
Market Cap (₹ Cr.) 304
Equity (₹ Cr.) 4.9
Face Value (₹) 10
Industry PE 61.4

Management X-Ray of Milkfood :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Milkfood

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Milkfood Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Milkfood on 27-Jan-2023 18:01 is : 621.1.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 27-Jan-2023 18:01 the market cap of Milkfood stood at ₹ 303.5.
The latest PE ratio of Milkfood as of 27-Jan-2023 18:01 is 53.15.
The latest PB ratio of Milkfood as of 27-Jan-2023 18:01 is 2.42
The 52-week high of Milkfood is ₹ 673.0 and the 52-week low is ₹ 286.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Milkfood is ₹ 367.0 ( Cr.) .

About Milkfood Ltd

Milkfood Limited was set up in the year 1973 with the first Plant at Bahadurgarh, on the Rajpura Patiala Road in the State of Punjab. The company is promoted by Karamjit Jaiswal. The Jaiswal family are also promoters of Jagatjit Industries Limited, which has interests in Alcoholic Beverages (AC Black, Aristocrat Premium, ACP , Bonnie Scot) , Malted Foods, Plastic and Glass Bottling and Real Estate. The Group has a Gross Turnover in excess of INR 5500 Million.

The company manufactures Pure Ghee, Skimmed Milk Powder , Whole Milk Powder, and Dairy Whitener . From the intial installed capacity of 80 MT of milk processing per day at Patiala during 1974 the Company at has enhanced the processing capacity from time to time and the present milk processing capacity of all Plants is 1500 MT per day.

In the year 1987 the company commissioned its second plant at Gurgoan in the State of Haryana for the manufacture of Cultured Desserts like Long Life Yoghurts, UHT Milk , Juices etc. and Frozen Desserts Yoghurts like Ice Creams. The Ice Cream brand 'Milkfood 100% Ice cream' still conjurs up memories even years after it's sale to Hindustan Lever.

The company has taken on lease a Dairy Plant in 2003 at Hamira, Distt. Kapurthala, in the State of Punjab to supplement the production capacities by 200 MT of milk processing per day. The capacity has since been enhanced to 500 MT of Milk Processing per day.

In 2005, the company has taken expansion plans further to the State of Uttar Pradesh where a fully modernised facility has been set up at Village Agwanpur, Tehsil Moradabad to add capacity of 500 MT of milk processing per day. The plant has commenced production in November 2005.

Further expansion plans for manufacture of Export Oriented and Value added products like Casein , Demineralised Whey Powder , Whey Protien Concentrates has been initiated at the Bahadurgarh facility, which is likely to be commissioned by end of 2006. Capacity expansion will enable the Bahadurgarh plant to process 700 MT of milk per day.

Milkfood has three plants:

Patiala Plant- The plant has facilities to manufacture Anhydrous Milk Fat (Ghee) , Milk powders (Skimmed Milk Powder, Whole Milk Powder). The plant is being upgraded to manufacture value added products like Casein, Demineralised Whey powder, Lactose and Whey Protein Concentrate powders of different percentages.

Hanira Plant- The plant has facilities to manufacture Anhydrous Milk Fat (Pure Ghee) , Milk Powders (Skimmed Milk Powder , Whole Milk Powder, Dairy Whitener & Infant Foods). The plant has facility to produce powder with disc and nozzle atomization resulting into powders of low or high density. A Three stage spray drying system with facility of Lecithination helps in production of instant powders. A separate facility for production of malted food is available.

Moradabad Plant- The plant has facilities to manufacture Anhydrous Milk Fat (Pure Ghee), Milk Powders (Skimmed Milk powder, Whole Milk Powder).Among the private sector corporations in India the company is one of the largest supplier for Milk Powders to the institutions i.e Glaxo Smithkline , Cadburys, Nestle , Mother Dairy , Metro Dairy , Lotus Chocolate.

The company also exports Skimmed Milk Powder and Whole Milk Powder to the South Asian countries of Pakistan, Bangladesh , Nepal, Sri Lanka , Afghanistan and Myanamar.

For distribution of products, Redistribution depots are established at Gurgoan , Delhi , Kolkatta , Chandigarh and Mumbai apart from Agents spread over almost all states.

Products manufactured by the company include:

  • Pure Ghee
  • Skimmed Milk Powder
  • Whole Milk Powder
  • Dairy Creamer
  • Dairy Whitener

Future plans

A 100% Export Oriented Unit is being set up at the existing facilities at Bahadurgarh, Patiala to manufacture Casein which commands a premium price in Export markets of USA, Europe and Japan. India being the largest and cheapest producer of Milk holds comparative price advantage in the product which has varied applications from Food Products, Pharma to Technology products. Demineralised Whey Powder is a by product which has both a Domestic and Export market.

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