Dodla Dairy Targets 25% Stock Price Increase Through Strategic Growth

Dodla Dairy shares are currently trading at approximately ₹1,224 on the Bombay Stock Exchange. Systematix Institutional Equities has expressed a positive outlook on the company, setting a target price of ₹1,530, which represents a potential 25% increase from current levels. This optimistic forecast is based on Dodla Dairy's strategic growth initiatives.

One of the key factors contributing to this outlook is Dodla’s expanding Value-Added Products (VAP) sector in India and its robust performance in African markets. Systematix anticipates that these areas will drive low-teens revenue growth through the fiscal years 2025 to 2028, with expected revenue CAGR of over 15% for India VAP and 18% for Africa operations.

Systematix uses a price-to-earnings (P/E) ratio of approximately 26x based on September 2027 earnings estimates to value Dodla Dairy. The company’s geographic expansion, return ratios, and earnings potential are important considerations for this valuation.

Additional revenue is expected from newly commissioned assets, such as a greenfield manufacturing plant in Maharashtra and the acquisition of Osam Dairy. Analysts also predict that Dodla Dairy will maintain medium-term margins of around 10% due to an improved product mix, despite competitive pressures in the dairy sector.