Milky Mist Dairy Food shares fall after post-listing rally
Milky Mist Dairy Food’s shares reached an intraday low of Rs 191.25 on the NSE, a decline of 4.21%. The fall later eased, with the stock trading near Rs 200. The movement came after a 42% gain across the two sessions following its listing.
The company entered the market on August 18 at Rs 165 a share, compared with an IPO price of Rs 140. The stock gained a further 10% in the next session. Its Rs 1,553 crore offering had received subscriptions equivalent to 56.12 times the shares available.
The IPO included a fresh issue of 10.20 crore shares valued at Rs 1,428 crore and an offer for sale of 89 lakh shares worth Rs 125 crore. The issue price range was Rs 133-140 a share. Before the listing, Milky Mist’s unlisted shares were trading at a grey-market premium of about 14% to the IPO price.
Following the gains, the company’s market capitalisation was about Rs 15,369 crore. Shivani Nyati, head of wealth at Swastika Investmart, identified the company’s 33.6% revenue compound annual growth rate, improving margins and 32% return on equity as factors supporting its valuation. She also cited Milky Mist’s position in value-added dairy products.
Jongsong Investments, which is backed by Temasek, invested Rs 482 crore in a pre-IPO round at Rs 139.76 a share for a 5.2% stake. Nyati said the investment provided additional support for the company’s growth prospects and IPO valuation. She also noted that the stock was trading at about 85 times forecast fiscal 2026 earnings, compared with an average price-to-earnings multiple of about 52.5 for the dairy sector.
Nyati said the premium was supported by the company’s FMCG-like margins and mix of value-added products, but added that the sharp listing performance could result in profit-taking. Her stated strategy was to hold the stock, use Rs 150 as a stop-loss and consider adding on significant declines rather than buying aggressively at current levels.
For the year ended March 2026, Milky Mist reported revenue of Rs 3,145 crore, up 33.6% from the previous year. Net profit increased 175.7% year on year to Rs 127 crore.
