Dodla Dairy Limited was incorporated – Globe Capital
Dodla Dairy Limited was incorporated
Closed
Price Band
Rs. 421 – 428
IPO Issue Period
Jun 16, 2021 to Jun 18, 2021
Issue Size
Rs. 520.18 Cr.
Face value
Rs. 10/-
Fresh issue
Rs. 50 Cr.
Offer for sale
Rs. 470.18 Cr.
Minimum Shares for Retail
35 shares
Maximum Shares for Retail
455 shares
Listing on
NSE, BSE
Issue Type
Book Building
Tentative Listing Date
28-Jun-21
QIB
Not More than 50% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 35% of the offer
Registrar to the Issue
Link Intime India Private Ltd

Axis Capital Limited, ICICI Securities Limited

Dodla Dairy Limited was incorporated on May 15 1995 at Hyderabad. Dodla Dairy is an integrated dairy company based in south India primarily deriving all of their revenue for Fiscal 2020 and for the 9 months period ended December 31, 2020 from the sale of milk and dairy based Value Added Products (“VAPs”) in the branded consumer market. Its Indian operations are mainly undertaken under the brand name of “Dodla”, “Dodla Dairy”, and “KC+” whereas it serves overseas market under the brand name of “Dodla Dairy”, “Dairy Top”, and “Dodla+”. Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, and Maharashtra are the key Indian market segments served by the company while in the overseas market, it mainly serves countries like Uganda and Kenya. It has a total of 13 processing plants to process raw material into packaged milk and manufacture dairy-based value-added products. The firm has a strong distribution network of 40 sales offices, 3336 distribution agents, 863 milk distributors, and 449 product distributors across 11 states in India. Dodla Sunil Reddy, Dodla Sesha Reddy, and Dodla Family trust are the company promoters.

For year/ period ended ( in Cr.)

31 Mar 2021 31 Mar 2020 31 Mar 2019
Total Revenue 2139.37 1691.67 1590.48
Profit After Tax 49.87 62.76 56.85
EPS 8.96 11.5 10.27
OPM(%) 6.59% 7.93% 7.09%
PATM(%) 2.33% 3.71% 3.57%
  • It has large product portfolio in milk segment.
  • Leading dairy player in the Southern region of India.
  • It has strong distribution network.
  • Its integrated business model with stringent quality control procedure.
  • Experienced board and managerial team.
  • To repay or prepay company’s borrowings fully or partially
  • To finance capital expenditure requirements.
  • To meet general corporate purposes.

The Company has performed very well & reported super earnings in the pandemic period of FY21. Based on the FY20 earnings the issue is priced at P/E multiple 51 times which fully priced. The company plans to add milk products going forward which makes it a long term bet. Investors may consider an investment with a long term perspective.

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