Check out Dodla Dairy’s numbers post Covid before taking a call
Dairy companies are generally exposed to fluctuations in milk procurement and pricing — leading to cash flow issues. Historically, dairy stocks have hardly created long term wealth for investors.
Synopsis
Dodla Dairy’s financials are encouraging and firm has a wide presence in the South but dairy sector’s poor record in long-term wealth creation is a risk factor
ET Intelligence Group: Hyderabad-based Dodla Dairy is an integrated B2C dairy company selling milk and value-added milk products with a presence in south India as well as a small presence in Uganda and Kenya in Africa. The IPO provides a partial exit to private equity players TPG and IFC. The proceeds from the fresh issue will be used for debt repayment.
Business and Financials
Around 73% of the company’s revenues are earned from milk and the
