Dodla Dairy Ltd. (DODLA) AI Stock Analysis

• Market Cap: ₹67.96B
• Dividend Yield: 0.4%
• Average Volume (3M): 1.77K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.04
• Revenue Growth: 11.41%
• EPS Growth: 18.79%
• Country: IN
• Employees: 2,897
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 11.39
• Shares Outstanding: 60,327,810
• 10 Day Avg. Volume: 1,242
• 30 Day Avg. Volume: 1,770
• PEG Ratio: 0.48
• Price to Book (P/B): 4.87
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 16.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 45.42
• Revenue Forecast (FY): ₹40.88B

• Rating: 65 Neutral
• Price Target: ₹1,211.00 ▼(-0.81% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Dodla Dairy Ltd. has a strong financial foundation with robust revenue growth and profitability, contributing significantly to the overall score. However, technical indicators suggest bearish momentum, and the valuation indicates potential overvaluation, which dampens the overall score. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a high equity ratio provide durable financial flexibility: supports working-capital needs for seasonal milk procurement, funds capex or plant upgrades without stress, and reduces solvency risk during commodity-price swings, strengthening long-term resilience.

Revenue Growth Momentum

Sustained double-digit top-line expansion reflects expanding distribution, stronger product mix or increased market penetration. Persistent revenue growth supports scale economies, amortizes fixed processing costs across more volume, and creates runway for value-added product expansion.

Margin and Profitability Profile

Healthy gross and operating margins indicate competitive processing efficiency and pricing power in products mix. This margin buffer helps absorb milk-price volatility, funds marketing for VAPs, and supports reinvestment in cold-chain and capacity to sustain long-term earnings quality.

Negative Factors

Cash Conversion Inefficiency

While operating cash flow recovered, weaker free-cash-flow conversion versus net income points to working-capital or capex timing issues. Persisting conversion gaps can constrain organic investment, dividend capacity, and make the firm more reliant on external funding for growth initiatives over months to years.

Raw Milk Procurement & Seasonality Risk

Dependence on raw milk availability and volatile procurement costs is structural. Seasonality and input-price swings can compress margins and require higher working capital in lean periods. Long-term margin predictability depends on procurement strategies and farmer relationships.

Modest Net Margin Headroom

A modest net margin implies limited room to absorb sustained cost inflation or fund aggressive reinvestment without margin dilution. Over time this can slow organic expansion into new markets or VAP categories unless operational efficiencies or higher-margin mix shifts are achieved.

Dodla Dairy Ltd. Business Overview & Revenue Model

Company Description

Dodla Dairy Limited, together with its subsidiaries, produces and sells milk and milk products in India and internationally. The company offers toned, standardized, full cream, ultrahigh temperature processed (UHT)-toned, and UHT-double toned milk; and milk products, such as butter milk/sweet lassi, ghee, paneer, curd, flavored milk, butter, doodh peda, ice cream, skimmed milk powder, and milk based sweets. It also engages in processing, producing, preserving, canning, bottling, making, packing, re-packing, importing, buying, selling, supply, and distribution of milk, evaporated milk, powdered milk, butter, cheese, dairy whitener, and non-dairy whitener. In addition, the company manufactures and sells cattle feed. Dodla Dairy Limited was incorporated in 1995 and is based in Hyderabad, India.

How the Company Makes Money

Dodla Dairy generates revenue through multiple streams, primarily from the sale of its dairy products, which include fresh milk, yogurt, butter, and value-added products. The company benefits from a well-established distribution network that allows it to reach a wide customer base across various regions. Key revenue streams include direct sales to consumers, partnerships with retail outlets, and contracts with food service providers. Additionally, Dodla Dairy engages in strategic partnerships with local farmers to ensure a steady supply of quality milk, which not only supports local agriculture but also enhances the company's profit margins. Seasonal demand fluctuations and promotional campaigns also play a role in boosting sales, contributing to the company's overall revenue.

Dodla Dairy Ltd. Financial Statement Overview

Summary

Dodla Dairy Ltd. presents a strong financial position with robust revenue growth, profitability, and efficient operations. The balance sheet reflects low leverage and high equity, ensuring financial stability. Cash flows have improved significantly, demonstrating strong cash generation capabilities. While overall financial health is solid, focus on further improving cash conversion efficiency could enhance financial performance.

Income Statement

Dodla Dairy Ltd. has shown a strong performance in the latest year with significant revenue growth of approximately 19% from the previous year. Gross profit margin stands at 27.4% and net profit margin at 7%, indicating solid profitability. The EBIT and EBITDA margins, at 23.1% and 10.2% respectively, highlight efficient operations. Overall, the income statement reflects a robust growth trajectory and profitability enhancement.

Balance Sheet

The balance sheet of Dodla Dairy Ltd. is stable, with a low debt-to-equity ratio of 0.03, indicating low leverage. The equity ratio is strong at 81.2%, showcasing high financial stability. Return on equity is modest at 18.5%, reflecting decent profitability relative to equity. The company has maintained a healthy balance of assets and liabilities, contributing to financial stability.

Cash Flow

Dodla Dairy Ltd. has demonstrated a strong recovery in cash flows, with a substantial free cash flow growth. The operating cash flow to net income ratio is impressive, indicating efficient cash generation. However, the free cash flow to net income ratio highlights a need for improvement in converting earnings to cash flows. Overall, the cash flow statement reflects solid cash management with room for efficiency gains.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Jun 2021
Income Statement
Total Revenue	38.15B	37.20B	31.25B	28.12B	22.42B	19.43B
Gross Profit	9.57B	10.21B	5.39B	4.05B	5.90B	5.72B
EBITDA	3.96B	3.81B	3.17B	2.15B	2.25B	2.50B
Net Income	2.58B	2.60B	1.67B	1.22B	1.33B	1.26B
Balance Sheet
Total Assets	0.00	17.31B	14.78B	12.51B	10.88B	9.72B
Cash, Cash Equivalents and Short-Term Investments	7.21B	7.32B	2.87B	3.15B	2.38B	2.85B
Total Debt	0.00	424.34M	457.87M	323.26M	128.73M	986.15M
Total Liabilities	-14.06B	3.25B	3.39B	2.79B	2.45B	3.14B
Stockholders Equity	14.06B	14.06B	11.39B	9.72B	8.43B	6.58B
Cash Flow
Free Cash Flow	0.00	4.10B	-1.07B	523.37M	993.84M	1.88B
Operating Cash Flow	0.00	5.20B	-7.12M	1.61B	1.71B	2.45B
Investing Cash Flow	0.00	-5.28B	300.17M	-2.14B	-1.38B	-2.00B
Financing Cash Flow	0.00	-77.02M	-12.50M	145.91M	-488.78M	108.47M

Dodla Dairy Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1220.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DODLA, the sentiment is Negative. The current price of 1220.95 is above the 20-day moving average (MA) of 1182.62, above the 50-day MA of 1200.52, and below the 200-day MA of 1285.89, indicating a bearish trend. The MACD of -16.76 indicates Positive momentum. The RSI at 33.95 is Neutral, neither overbought nor oversold. The STOCH value of 49.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DODLA.

Dodla Dairy Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DODLA	65 Neutral	₹67.96B	26.41	―	0.40%	11.41%	18.79%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HERITGFOOD	62 Neutral	₹28.94B	17.97	―	0.54%	9.83%	-0.92%
HATSUN	61 Neutral	₹203.09B	56.96	―	0.61%	10.61%	7.97%

Dodla Dairy Ltd. Corporate Events

Dodla Dairy Uploads Q3 FY26 Earnings Call Audio for Investors

Dodla Dairy Limited has notified the stock exchanges that it has uploaded the audio recording of its Q3 FY26 earnings call with analysts and investors on its corporate website. The call, held on 28 January 2026 following the announcement of financial results for the quarter and nine months ended 31 December 2025, provides the market with direct access to management’s commentary and discussion with market participants, enhancing transparency and information availability for shareholders and potential investors.

Dodla Dairy Q3 FY26 Revenue Climbs 13.7% as Value-Added Mix Shifts Away from Bulk Sales

Dodla Dairy reported a 13.7% year-on-year rise in revenue to ₹10,250 million for the third quarter of FY26, supported by a 7.5% increase in milk procurement to 18.3 LLPD and a 19.6% jump in milk sales volume to 13.9 LLPD. Despite the top-line growth, Q3 EBITDA fell 17.3% to ₹793 million and margins compressed to 7.7% from 10.6% a year earlier, even as PAT grew 8.1% to ₹687 million, with PAT margin at 6.7%. For the nine months, revenues grew 8.5% to ₹30,507 million while EBITDA declined 14.3% and PAT rose a modest 2.7%, indicating pressure on operating profitability. The product mix shifted within value-added offerings: total VAP sales were ₹2,581 million, accounting for 25% of revenue versus 32% a year earlier, largely due to a sharp reduction in bulk SMP and butter sales, which dropped from ₹720 million to ₹1 million. Excluding bulk sales, VAP contribution improved to 25% of revenue from 23%, with curd volumes remaining strong, underscoring the company’s strategic emphasis on retail and higher-margin value-added products even as margin headwinds persist.