Is It The Right Time To Invest In The

Multibagger Parag Milk?

Parag Milk is one of the leading manufacturers and
marketers of dairy-based branded products in India.
The company deals in cow milk-based branded
consumer Products.

The Indian Front and Prospect for the

Dairy Companies
Though India accounts for the largest cattle head
count in the world, the countrys average cattle yield
is less than 7 litres per day, which is just 30 per cent
of the corresponding yield in a country like The
Netherlands (25 ltrs). Indias cattle yield should trend upwards. Even a mere 1 per cent
increase in cattle yield could increase Indias milk output by a sizable 4 million litres per day,
which widens the countrys access to an abundant raw milk resource.
The consumption of milk in India 97 litres per capita which is very poor when compared with
the United States consumption average of 285 litres per capita. This is not because Indians do
not desire to drink milk but because of a paucity of milk processing and packing centres.
Take away from the above analysis is that India represents an attractive dairy product
opportunity for companies with long term seriousness.

How was 2015-16 for the Company?

The year 2015-16 was an important year in the Companys existence, reflected in a revenue
growth of 14 per cent and a profit after tax growth of 47 per cent. This profitable growth is a

reflection of the Companys preparedness to capitalize on opportunities and outperform the

national dairy sector growth. This record performance was achieved even after economic
sluggishness, weak rural incomes and lower demand for milk powders, validating the
robustness of the Companys integrated business model.

A word from Dynamic Levels

The research team of Dynamic Levels carefully handpicks top 500 stocks out of the 1700
plus scrips listed on the National Stocks Exchange. These top 500 Shares are identified by
Dynamic Levels research team at the end of every quarter. After identifying the top 500
shares, these shares are further filtered to find the list of multibagger stocks, based on our
technical and fundamental research as well as high trading volumes.
Parag Milk is a part of the multibagger stock list and is considered to have a great potential to
grow in the long run.

Buy and Sell Target (To be or not to be)

At the CMP of Rs 257.05, Parag Milk share price is trading very close to it 5 month low of
Rs 250. This is a strong support level and anything between Rs 250 to 252 is a good
buying opportunity. The target could be set at Rs 325, which is its 2 month high.

Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research
team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Disclosure
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Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research Analyst/
his Relative:

Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or any compensation or other benefits from the
subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company

Article Written by
Nabarupa Kanjilal