Milky Mist Dairy Food debuts on Indian exchanges amid high valuation concerns
The packaged dairy company begins trading today with an estimated 13 percent listing premium, though analysts warn its high valuation and debt load warrant caution for new investors.
Milky Mist Dairy Food Limited began trading on the Bombay Stock Exchange and National Stock Exchange today at 10:00 IST. The equity shares were placed in the B Group of Securities following a special pre-open session. The listing comes after the company finalized its IPO allotment last Friday.
The initial public offering was priced at the upper end of its ₹133 to ₹140 per share band. Grey market indicators currently point to a premium of ₹18, suggesting an estimated listing price of ₹158. This represents a roughly 13 percent gain over the upper price band.
Investor appetite for the offering was robust during the August 11 to 13 subscription window. Qualified institutional buyers subscribed 155.83 times, while non-institutional investors participated 34.91 times. Retail investors also showed solid interest, subscribing 8.41 times their reserved portion.
Analysts point to the company's rapid expansion as a primary driver of this demand. Mahesh M. Ojha, Vice President at Kantilal Chhaganlal Securities, noted a 31.3 percent revenue compound annual growth rate between FY24 and FY26. This growth is underpinned by a vast network of over 3.75 lakh retail touchpoints and 4,001 distributors across 22 states.
Despite the strong top-line growth, valuation metrics present a hurdle for immediate upside. At the upper price band, the company trades at a steep 84.9 times its projected FY26 post-issue earnings. Tushar Badjate, Director at Badjate Stock Shares, highlighted that this multiple makes Milky Mist more expensive than peers like Hatsun and Bikaji.
Leverage remains another focal point for market professionals evaluating the stock. The company carries ₹1,672 crore in debt against a net worth of ₹463 crore. While ₹497 crore of the IPO proceeds are earmarked for debt reduction, Badjate cautioned that the balance between growth and leverage will dictate long-term performance.
Market strategists are advising a differentiated approach based on investment horizons. Ojha anticipates a 12 to 15 percent listing upside and recommends that short-term traders book partial gains. Conversely, medium- to long-term investors are encouraged to hold, betting on the company's pricing power in premium value-added dairy segments.
