Small Cap FMCG Stock Trading 7.25% Away From 52-Week Low To Buy For 39% Gains, Says ICICI Securities

ICICI Securities has come up with a "Buy" on Dodla Dairy Ltd, a small-cap FMCG stock. The brokerage has estimated a target price of Rs 620 apiece for the stock. According to the given target price, if you buy the stock at the current market price, it can fetch up to 39% gains considering the current market price. The brokerage in the report stated, "We remain positive on Dodla due to its competitive advantages and strong growth opportunity in its core region of South India."

Stock Performance Over the Past 5 Years

The stock of Dodla Dairy last traded at Rs 447.20 apiece on BSE. Shares recently hit the new 52 week low at Rs 417 apiece on 13 March 2023. Currently trading 7.25% away from 52 week low. The stock's 52 week high is Rs 578 apiece, recorded on 2 September 2022.

The stock has fallen 2.12% in the last 1 week. It has fallen 8.61% in the last 1 month and 9.2% in the last 3 months, respectively. It has fallen 9.57% in the past 1 year.

Model recovery in margins in H2FY24; Milk procurement prices near peak levels

ICICI Securities said, "We model Dodla to report revenue and PAT CAGR of 17.2% and 19% respectively, over FY22-25E and RoCE to be 18%+ in FY24-FY25. We maintain BUY rating with DCF-based TP of Rs620 (implied P/E of 16.5x FY25E EPS). Key risks: Delay in distribution and procurement expansion, and failure of some of the launches."

Disclaimer - The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.