Dodla Dairy (BSE:543306) - Share price, News & Analysis

Q: What is the Fair Price of 543306 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

543306 (₹502.95) is trading above our estimate of [[fair value]] (₹480.68)

543306 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	2/6
Financial Health	6/6
Dividends	0/6

543306 Stock Overview

Dodla Dairy Limited, together with its subsidiaries, produces and sells milk and milk products in India and internationally.

Rewards

Earnings are forecast to grow 25.33% per year

Risk Analysis

No risks detected for 543306 from our risk checks.

Dodla Dairy Competitors

Venky's (India)

BSE:523261

₹29.8b

Bannari Amman Sugars

BSE:500041

₹33.8b

LT Foods

BSE:532783

₹29.6b

Dalmia Bharat Sugar and Industries

BSE:500097

₹27.4b

Price History & Performance

Summary of all time highs, changes and price drops for Dodla Dairy
Historical stock prices
Current Share Price	₹502.95
52 Week High	₹672.00
52 Week Low	₹385.00
Beta	0
1 Month Change	3.96%
3 Month Change	5.22%
1 Year Change	-16.08%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-17.43%

Shareholder Returns

	543306	IN Food	IN Market
7D	-0.3%	-1.3%	1.4%
1Y	-16.1%	0.3%	8.2%

Return vs Industry: 543306 underperformed the Indian Food industry which returned 1.2% over the past year.

Return vs Market: 543306 underperformed the Indian Market which returned 8.5% over the past year.

Price Volatility

Is 543306's price volatile compared to industry and market?
543306 volatility
543306 Average Weekly Movement	3.4%
Food Industry Average Movement	6.8%
Market Average Movement	6.4%
10% most volatile stocks in IN Market	9.0%
10% least volatile stocks in IN Market	4.1%

Stable Share Price: 543306 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 543306's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	2,644	Busireddy Venkat Reddy	https://www.dodladairy.com

Dodla Dairy Limited, together with its subsidiaries, produces and sells milk and milk products in India and internationally. The company offers toned, standardized, full cream, ultrahigh temperature processed (UHT)-toned, and UHT-double toned milk; and milk products, such as butter milk/sweet lassi, ghee, paneer, curd, flavored milk, butter, doodh peda, ice cream, skimmed milk powder, and milk based sweets. It also engages in processing, producing, preserving, canning, bottling, making, packing, re-packing, importing, buying, selling, supply, and distribution of milk, evaporated milk, powdered milk, butter, cheese, dairy whitener, and non-dairy whitener.

Dodla Dairy Fundamentals Summary

How do Dodla Dairy's earnings and revenue compare to its market cap?
543306 fundamental statistics
Market Cap	₹29.92b
Earnings (TTM)	₹1.22b
Revenue (TTM)	₹24.48b

24.6x

P/E Ratio

1.2x

P/S Ratio

Is 543306 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
543306 income statement (TTM)
Revenue	₹24.48b
Cost of Revenue	₹18.14b
Gross Profit	₹6.34b
Other Expenses	₹5.12b
Earnings	₹1.22b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	20.45
Gross Margin	25.89%
Net Profit Margin	4.97%
Debt/Equity Ratio	1.5%

How did 543306 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 543306 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 543306?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 543306. This is calculated by dividing 543306's market cap by their current preferred multiple.
What is 543306's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹29.92b

543306 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	13.6x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does 543306's PE Ratio compare to its peers?

543306 PE Ratio vs Peers

The above table shows the PE ratio for 543306 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18.6x
523261 Venky's (India)	18.7x	n/a	₹29.8b
500041 Bannari Amman Sugars	33.6x	n/a	₹33.8b
532783 LT Foods	9.6x	22.9%	₹29.6b
500097 Dalmia Bharat Sugar and Industries	12.3x	30.9%	₹27.4b
543306 Dodla Dairy	24.6x	25.3%	₹29.9b

Price-To-Earnings vs Peers: 543306 is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the peer average (18.6x).

Price to Earnings Ratio vs Industry

How does 543306's PE Ratio compare vs other companies in the IN Food Industry?

Price-To-Earnings vs Industry: 543306 is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the Indian Food industry average (23.7x)

Price to Earnings Ratio vs Fair Ratio

What is 543306's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

543306 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.6x
Fair PE Ratio	25.9x

Price-To-Earnings vs Fair Ratio: 543306 is good value based on its Price-To-Earnings Ratio (24.6x) compared to the estimated Fair Price-To-Earnings Ratio (25.9x).

Share Price vs Fair Value

What is the Fair Price of 543306 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 543306 (₹502.95) is trading above our estimate of fair value (₹480.68)

Significantly Below Fair Value: 543306 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Dodla Dairy forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

25.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 543306's forecast earnings growth (25.3% per year) is above the savings rate (6.8%).

Earnings vs Market: 543306's earnings (25.3% per year) are forecast to grow faster than the Indian market (18.7% per year).

High Growth Earnings: 543306's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 543306's revenue (13.1% per year) is forecast to grow faster than the Indian market (10.6% per year).

High Growth Revenue: 543306's revenue (13.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if 543306's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Dodla Dairy performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

19.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 543306 has high quality earnings.

Growing Profit Margin: 543306's current net profit margins (5%) are lower than last year (6.5%).

Past Earnings Growth Analysis

Earnings Trend: 543306's earnings have grown by 19.5% per year over the past 5 years.

Accelerating Growth: 543306's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 543306 had negative earnings growth (-6.3%) over the past year, making it difficult to compare to the Food industry average (13.9%).

Return on Equity

High ROE: 543306's Return on Equity (14.4%) is considered low.

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Financial Health

How is Dodla Dairy's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 543306's short term assets (₹4.0B) exceed its short term liabilities (₹1.9B).

Long Term Liabilities: 543306's short term assets (₹4.0B) exceed its long term liabilities (₹575.6M).

Debt to Equity History and Analysis

Debt Level: 543306 has more cash than its total debt.

Reducing Debt: 543306's debt to equity ratio has reduced from 45.1% to 1.5% over the past 5 years.

Debt Coverage: 543306's debt is well covered by operating cash flow (1329.4%).

Interest Coverage: 543306 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Dodla Dairy current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 543306's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 543306's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 543306's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 543306's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 543306 is not paying a notable dividend for the Indian market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 543306 has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average board tenure

CEO

Busireddy Venkat Reddy (59 yo)

no data

Tenure

₹26,025,116

Compensation

Mr. Busireddy Venkat Krishna Reddy serves as Chief Executive Officer of Dodla Dairy Limited. He has vast experience in Processing, Maintenance and Marketing of Milk & Milk Products. Previously he was assoc...

CEO Compensation Analysis

Compensation vs Market: Busireddy Venkat's total compensation ($USD326.98K) is about average for companies of similar size in the Indian market ($USD269.19K).

Compensation vs Earnings: Busireddy Venkat's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: 543306's board of directors are considered experienced (4.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/13 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31