Shares of Milky Mist Dairy Food jumped another 10 per cent after making a decent market debut, listing with nearly an 18 per cent premium over the IPO price on Tuesday, though analysts advised caution despite a positive view.
Milky Mist shares listed at Rs 165 apiece on NSE, marking a premium of nearly 18 per cent over the IPO price of Rs 140 apiece. After listing, the shares of the company surged 10 per cent to hit the upper circuit at Rs 181.50 apiece on NSE, implying a rise of nearly 30 per cent from the IPO price.
The company’s market capitalisation currently stands at nearly Rs 13,973 crore. The sharp gains came amid heavy trading volumes, with over 9 crore shares worth Rs 1,581 crore already traded, according to data on NSE at 11.30 am.
Milky Mist’s strong debut followed its Rs 1,553 crore IPO receiving an overwhelming response from investors, being subscribed 56.12 times overall. The company’s maiden public issue comprised a fresh issue of 10.20 crore shares worth Rs 1,428 crore and an Offer for Sale (OFS) of 89 lakh shares valued at Rs 125 crore, at a price band of Rs 133-140 per share.
Notably, the market debut exceeded expectations. Ahead of listing, the unlisted shares of Milky Mist traded with around a 14 per cent grey market premium (GMP) over the IPO price.
Also read | Milky Mist Dairy Food shares list at 18% premium over IPO price
Should you buy, sell or hold Milky Mist shares?
Milky Mist’s strong 33.6 per cent revenue CAGR, expanding margins and 32 per cent RoE, along with its leadership in the value-added dairy segment, support its premium positioning, said Shivani Nyati, Head of Wealth at Swastika Investmart. She noted that Temasek-backed Jongsong Investments invested Rs 482 crore in the pre-IPO round at Rs 139.76 per share for a 5.2 per cent stake, providing additional validation to the company’s growth prospects and IPO valuation.
However, at around 85x FY26 earnings, valuations remain significantly higher than the dairy sector average of 52.5x P/E, the analyst noted. "While the premium is supported by its FMCG-like margins and value-added product mix, the strong listing may lead to some profit-booking," she added.
While Shivani Nyati remains positive on the business, she warned that investors should avoid chasing the stock at current levels. She advised investors to hold the stock with a stop-loss of Rs 150 and consider adding on meaningful dips.
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(With inputs from agencies)
