Milky Mist Dairy Food shares came under mild profit-booking pressure on Thursday, slipping as much as 4.21% to an intraday low of ₹191.25 on the NSE after gaining 27% over the previous two trading sessions following their market debut. However, the decline later moderated, with the shares trading broadly flat around ₹200 apiece. The Thursday dip comes after a strong run since listing, with the stock extending gains in the following trading session, rising another 10% and taking investors on a strong post-listing ride. The strong debut was backed by an overwhelming response to Milky Mist Dairy Food's ₹1,553 crore IPO, which was subscribed a staggering 56.12 times overall.
Milky Mist Dairy Food shares made a robust debut on Tuesday, listing at ₹165.00 on BSE and NSE, representing a 17.85% premium to the issue price of ₹140 per share. The stock extended gains and was locked in an upper circuit of 10% at ₹199.65 apiece on NSE, bringing shares up by nearly 30% from their issue price. The ₹1,553 crore IPO, which was open from August 11 to 13, comprised a fresh issue of 10.20 crore equity shares aggregating to ₹1,428 crore, and an offer for sale of 89.28 lakh shares worth ₹125 crore. The strong listing performance was supported by a ₹20 grey market premium before listing, signalling a listing gain of more than 14% from the issue price. The company's market capitalisation now stands at ₹15,369.92 crore following the strong debut performance.
The fresh issue proceeds of ₹1,428 crore will be utilized for expansion and modernisation of the production facility and improving its cold-chain infrastructure. According to the company's IPO documents, the funds will also be used for setting up yoghurt, whey protein concentrate and cream cheese plants and installing chocolate coolers and ice cream freezers. The money will also be utilized for general corporate purposes to support the company's growth initiatives. Before the IPO, the company had mobilised ₹465.30 crore from anchor investors, including Nippon India Mutual Fund, HDFC MF, ICICI Prudential MF, Zulia Investments, Public Sector Pension Investment Board-IIFL Asset Management, International Finance Corporation (IFC) and India Acorn Fund. Founded in Tamil Nadu's Erode, Milky Mist sells value-added dairy products like cheese, paneer, curd, yoghurt, ghee, butter and ice cream, among others, and does not operate in the liquid milk segment.
According to Swastika Investmart Ltd. analysis, Milky Mist Dairy Food demonstrates strong fundamentals with 33.6% revenue CAGR, expanding margins and approximately 32% RoE. The company's best-in-class margin structure is defended through a difficult cost cycle, supporting its premium positioning in the value-added dairy segment. However, at around 85x FY26 earnings, valuations remain significantly higher than the dairy sector average of ~52.5x P/E. Temasek-backed Jongsong Investments invested ₹482 crore in the pre-IPO round at ₹139.76 per share for a ~5.2% stake, providing additional validation to the company's growth prospects and IPO valuation. Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, noted that while the premium is supported by FMCG-like margins and value-added product mix, the strong listing may lead to some profit-booking.
Shivani Nyati from Swastika Investmart recommends a 'Hold' on Milky Mist Dairy Food shares with a stop-loss of ₹150, noting that while the premium is supported by FMCG-like margins and value-added product mix, the strong listing may lead to some profit-booking. Her strategy suggests holding the stock, maintaining a stop-loss at ₹150 and looking to add on meaningful dips rather than buying aggressively at current levels. The company has established itself as India's only scaled pure-play value-added dairy company, with a 19% market share in packaged paneer and leading positions across cheese, curd and yogurt categories. According to Economic Times, with strong revenue growth, expanding profitability and a dominant position in value-added dairy products, Milky Mist has emerged as one of the more closely watched new-age dairy stocks, though after its sharp post-IPO gains, the key question for investors is whether the current valuation leaves enough room for further upside.
