As milk prices rise, analysts have an optimistic view on dairy stocks such as Heritage Foods and Dodla Dairy, hoping the companies' margins will grow in the near to medium term.
From a long-term perspective, they believe that a growing population, increasing disposable income and health consciousness will strengthen dairy consumption in India.
"We are witnessing a price rise after a gap of nearly 16 months. Value-added products such as curd, cheese and frozen desserts will witness price increases. As procurement prices remain low, margin improvement will happen for dairy stocks," said Ambareesh Baliga, an independent market analyst, who suggested that investors continue holding related stocks.
Milk prices
Global skimmed milk powder (SMP) prices increased 14.3 per cent year-on-year (Y-o-Y) and around 6 per cent month-on-month (M-o-M) in June.
Bu hikaye Business Standard dergisinin July 11, 2024 sayısından alınmıştır.
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Bu hikaye Business Standard dergisinin July 11, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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