Milky Mist shares hit another 10% upper circuit, rallying 43% from IPO price. Should you buy, sell or hold?

Milky Mist shares opened at Rs 190 on the BSE, compared with the previous close of Rs 181.45. Strong buying interest quickly pushed the stock to its daily upper price band and 52-week high of Rs 199.55, marking an intraday gain of 9.98%. The stock recorded a volume-weighted average price of Rs 196.48 and touched a low of Rs 189.85.

With Wednesday’s rally, the stock has now gained 42.5% from its IPO price of Rs 140. On its trading debut on Tuesday, August 18, the stock listed at Rs 165 on the NSE, delivering a listing premium of 17.86%.

The sustained momentum comes after Milky Mist’s blockbuster Rs 1,553 crore public issue. The IPO, which was open from August 11 to August 13, was subscribed 56.12 times overall. It comprised a fresh issue of 10.20 crore equity shares worth Rs 1,428 crore and an offer for sale of 89 lakh shares worth Rs 125 crore. The issue was priced in the range of Rs 133 to Rs 140 per share.

Should you buy, sell or hold Milky Mist shares?

According to Sunny Agrawal, Head of Fundamental Research at SBI Securities, the robust post-listing performance is well supported by Milky Mist’s solid foothold in value-added dairy products. The company holds a 19% market share in the private branded paneer market, a 12% share in cheese across South India, a 5% cheese market share pan-India, and a 13% share in the yoghurt category.Swastika Investmart Ltd, pointed out that the company’s 33.6% revenue CAGR, expanding margins and nearly 32% return on equity (RoE) support its premium positioning. She noted that Temasek-backed Jongsong Investments invested Rs 482 crore in the pre-IPO round at Rs 139.76 per share for a roughly 5.2% stake, adding confidence to the valuation.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

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