Earnings Highlights
Dodla Dairy delivered a strong operational and financial performance for the fourth quarter of FY24, with a notable 45 percent jump in net profit to ₹68 crore, compared to ₹47 crore in the same period last year. The sharp rise in earnings was backed by consistent demand, expansion in market presence, and better operational efficiencies across key regions. Revenue for the quarter stood at ₹909.6 crore, up 15.5 percent year-on-year from ₹787.4 crore, indicating robust sales momentum across the value chain.
The company’s EBITDA rose to ₹83.4 crore from ₹75.4 crore in Q4 FY23, reflecting a 10.6 percent improvement. However, the EBITDA margin came in slightly lower at 9.17 percent versus 9.58 percent a year ago, largely due to higher raw material costs and inflationary pressures in logistics and packaging. Still, Dodla Dairy maintained cost discipline, which helped it protect overall profitability in a challenging input environment.
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Company Snapshot
As of May 19, shares of Dodla Dairy closed at ₹1,146, giving the company a market capitalization of ₹6,915 crore. The stock currently trades at a P/E ratio of 29, slightly lower than the industry average of 31.2, offering a modest valuation for investors eyeing long-term growth. The company has reported an EPS of ₹39.8, return on equity (ROE) of 15.5 percent, and return on capital employed (ROCE) of 22.1 percent. With a debt-to-equity ratio of just 0.04, the balance sheet remains strong and relatively unleveraged.
Despite negative free cash flow of ₹105 crore for the fiscal year, largely attributed to aggressive reinvestment in supply chain and processing capabilities, the company holds a cumulative three-year FCF of ₹52.1 crore. The Altman Z-score of 11.0 signals financial robustness, and the consistent margin profile underlines operational efficiency. Price-to-book value stands at 5.35, reflecting moderate premium valuations amid strong growth.
Shareholding and Analyst Sentiment
Promoters held 59.7 percent of the total equity as of March 2025, while FIIs and DIIs owned 10.41 percent and 19.14 percent respectively. Public holding stood at 10.74 percent. The shareholder structure reflects stable institutional confidence and a reasonably diversified ownership base. Analyst sentiment remains upbeat, with 67 percent of analysts maintaining a ‘Buy’ rating and 33 percent suggesting ‘Outperform’, highlighting consistent growth delivery and solid fundamentals.
With expanding distribution channels, a diversified dairy product portfolio, and brand strength in southern India, Dodla Dairy continues to scale operations while managing risk prudently. Backed by a stable demand outlook and financial discipline, the company appears well-positioned to capture value in the evolving dairy sector landscape.
Disclaimer
This article is for educational and informational purposes only. We are not SEBI-registered investment advisors; none of this content should be considered financial advice. Please consult a certified financial planner or advisor before making any investment decisions.
Aditya Gaur is the founder of FinanceXaditya and a seasoned stock market investor with over 7 years of experience. Known for building India’s first public dividend growth portfolio showcase, he shares time-tested strategies and real insights that help everyday investors create wealth. With 50,000+ followers across social media, Aditya has become a trusted voice in personal finance and long-term investing.
