The Company is driving an ambitious global expansion plan with expanding its core areas and diversifying into new businesses.Buy for an upside potential of ~22% from the current level with an investment horizon of 9-12 months.
We have revised ORL’s FY18 EPS upwards by 17.2% and by 17.6% for FY19. Yet severe fluctuations in raw material prices and stressed assets of Indian steel industry would be major irritants. We recommend ’buy’ rating on the stock with target price of Rs 201 (previous target Rs 157) based on 24x FY19e earnings.
Parag Milk Foods is one of the leading dairy products companies in India. The company has been successful in creating strong brands like GO, Gowardhan and in introducing new products like Whey Protein.