Stock Below Rs 250: Low PE Dairy Stock Expands Cheese Capacity to 120 MT/Day; Board Approves Rs 105 Crore Capex

On Friday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index falling 21.45 points, or 0.09 per cent, to 24,614.55. Amid the weak market sentiment, Parag Milk Foods share price declined 0.96 per cent to Rs 223.81 after the company announced a Rs 105 crore capacity expansion for its cheese business, reported its Q1 FY27 financial results and appointed a new Chief Financial Officer.

Parag Milk Foods Approves Rs 105 Crore Cheese Capacity Expansion

Parag Milk Foods Limited announced that its Board of Directors has approved a brownfield expansion to increase its cheese manufacturing capacity from 60 metric tonnes per day (MT/day) to 120 MT/day, effectively doubling its existing capacity. The project involves an estimated capital expenditure of Rs 105 crore, which will be funded through a mix of internal accruals and debt, and is expected to be completed by FY28.

The company said the expansion is aimed at meeting the growing demand for its cheese and whey protein businesses while creating new growth opportunities. Under its flagship Go Cheese brand, the company commands an estimated 35 per cent market share in India and supplies products across retail, e-commerce, quick commerce and institutional channels.

According to the company, citing IMARC Group, the Indian cheese market is expected to grow from approximately Rs 12,900 crore in 2025 to around Rs 62,000 crore by 2034, driven by rising urbanisation, changing food preferences and the expansion of organised food service channels.

Parag Milk Foods Q1 FY27 Financial Performance

Parag Milk Foods reported consolidated revenue of Rs 945 crore for Q1 FY27, registering an 11 per cent year-on-year growth, supported by 3 per cent volume growth. Gross profit increased 11 per cent YoY to Rs 258 crore, while EBITDA rose 6 per cent YoY to Rs 70 crore. EBITDA margin stood at 7.4 per cent, compared with 7.7 per cent in the corresponding quarter last year.

The company's profit before Tax (PBT) remained largely stable at Rs 29 crore, up 0.4 per cent YoY, while profit after tax (PAT) declined 20 per cent YoY to Rs 22 crore, primarily due to the impact of higher current tax expenses.

Business Highlights

The company's New Age Business, comprising Pride of Cows and Avvatar, recorded 59 per cent YoY revenue growth to Rs 118 crore, with its contribution to overall revenue increasing to 13 per cent from 9 per cent in the year-ago period. Meanwhile, the flagship categories, including Ghee, Cheese, Paneer and Dahi, contributed 61 per cent of the company's total revenue during the quarter.

Parag Milk Foods said it maintained gross margin at 27.3 per cent, despite a 13 per cent YoY increase in milk procurement prices, supported by calibrated price increases and a favourable product mix.
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New CFO Appointed

The company also announced the appointment of Rakesh Kothari as Chief Financial Officer (CFO) and Key Managerial Personnel, effective August 7, 2026. Kothari has over 25 years of experience in Banking and corporate finance and was previously serving as President – Finance & Accounts at the company.

About Parag Milk Foods

Parag Milk Foods Ltd is one of India's leading dairy FMCG companies, offering products under brands including Gowardhan, Go, Pride of Cows and Avvatar. The company operates manufacturing facilities in Maharashtra and Andhra Pradesh and has a strong presence across value-added dairy products and sports nutrition.

Do you think Parag Milk Foods' Rs 105 crore cheese capacity expansion will support its long-term growth strategy?
Disclaimer: The article is for informational purposes only and not investment advice.