PARAG MILK FOOD INTRINSIC VALUE

Parag milk AVVTAR ANALYSIS

CHEESE 300 PER KG *24= ₹7200

Casein per kg 2000*3=₹6000

Which resulted 1kg of Whey protein of ₹2650

Total:7200+6000+2650= ₹15850

Raw materials 205 ltr milk required
Costing @40/ltr=8200

Profit
15850-8200=₹7650 per kg whey protein

PARAG MILK FOOD
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INTRINSIC VALUE 2018

BENJAMIN FORMULA

V=EPS*(8.5+2G)

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PARAG MILK FOOD
CURRENT EPS:10.87
GROWTH RATE:10 TO 15%

AFTER NEW PRODUCTS LAUNCHES PARAG MILK FOOD GROWTH COULD BE IN DOUBLE DIGIT, CONSIDERING DAIRY SECTOR EXPECTED GROWTH WHICH WOULD BE AROUND 15%.
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THEN CONSIDERING 15% GROWTH

VALUE :10.80*(8.5+2*15%)
VALUE :415 FOR 2018

CONSIDERING 10% GROWTH
VALUE SHOULD BE
:10.80*(8.5+2*10)=307
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EXPECTED SALES GROWTH FOR 2019
CONSIDERING 10% SALES GROWTH
SHOULD BE 1864*10/100=2050

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CURRENT MARGIN FOR PARAG MILK AROUND 5% WHICH SHOULD BE EXPECTED UPTO 6% WHICH MANAGEMENT FOCUSING ON TO ACHIEVE AROUND DOUBLE DIGIT MARGIN BUT WE SHOULD TAKE CURRENT MARGIN ONLY.

THEN CONSIDERING 6% MARGIN
NET PROFIT COMES AROUND 123 CR
AND EPS WILL BE 14.62.

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INTRINSIC VALUE FOR 2019
V=14.62*(8.5+2*15)

STOCK PRICE =562 @15% GROWTH

STOCK PRICE =416@10% GROWTH

OVERALL PARAG MILK FOOD IS A GROWTH STORY.

DISCLAIMER : I M INVESTED
PLEASE CONSULT YOUR FINANCIAL ADVISOR BEFORE INVESTMENT.

Author: Atul Singh Stock Market Analyst

Disclaimer: This Blog, its owner, creator / contributor is not a research analyst and expressing opinion only as an individual investor in Indian equities. He/She is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information. All information in this blog is posted for personal study, All information posted on blog is as available in public domain.