CMP: 180


Kwality Dairy (India) Limited manufactures dairy products which includes skimmed milk powder, diary whitener, whole milk powder, ice cream mix powder, butter and ghee.

Kwality Dairy is a good bet in mid-cap space. Its currently trading at a P/E of 65 as the Dairy industry is dominated by Nestle and Kwality Dairy at this point among the listed companies. Liabilities are high, but manageable. Revenues have risen amazingly strong from 133 Crores to 1607 Crores in the last 5 years. Profits have risen from less than 4 Crores to 47 Crores in the same period. NPM has marginally improved towards 3% in the last 5 years. There's loads of room for improvement with NPM which leaves lots of room for growth. Buy and hold for long term gains.