Parag Milk Foods Ltd. (PARAGMILK) AI Stock Analysis

• Market Cap: ₹27.20B
• Dividend Yield: 0.22%
• Average Volume (3M): 103.84K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.89
• Revenue Growth: 12.04%
• EPS Growth: 22.28%
• Country: IN
• Employees: 1,772
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Packaged Foods
• EPS (TTM): 2.31
• Shares Outstanding: 119,375,840
• 10 Day Avg. Volume: 50,668
• 30 Day Avg. Volume: 103,837
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹242.00
• Price Target Upside: 5.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ₹242.00 ▲(5.01% Upside)

Parag Milk Foods Ltd. shows a positive financial turnaround with improving profitability and cash flows, which is the most significant factor in its score. However, technical indicators suggest a short-term bearish trend, and the stock's valuation is moderate with a low dividend yield. Continued focus on financial stability and operational efficiency will be crucial for future growth.

Parag Milk Foods Ltd. Business Overview & Revenue Model

Company Description

Parag Milk Foods Ltd. (PARAGMILK) is a prominent dairy-based company in India, specializing in the production and distribution of a wide range of dairy products. The company operates across various sectors, including milk, cheese, butter, ghee, paneer, and other dairy products. Known for its quality and innovation, Parag Milk Foods leverages its extensive distribution network to reach consumers nationwide, offering products under well-known brands such as Gowardhan, Go, and Pride of Cows.

How the Company Makes Money

Parag Milk Foods Ltd. generates revenue primarily through the sale of its diverse range of dairy products. The company's key revenue streams include the sale of liquid milk, value-added products like cheese, butter, and ghee, and premium offerings under its brand Pride of Cows. Additionally, Parag Milk Foods has established strategic partnerships and distribution channels to enhance its market reach, including retail outlets, modern trade, and e-commerce platforms. The company's focus on innovation and quality, coupled with strong brand recognition, supports its earnings and market position.

Parag Milk Foods Ltd. Financial Statement Overview

Summary

Parag Milk Foods Ltd. has demonstrated a positive turnaround with strong revenue growth, improved gross and net profit margins, and better operational efficiency. The balance sheet is stable with a reasonable debt-to-equity ratio, while cash flow has turned positive, indicating effective cash management. However, further improvement in profit margins and debt reduction is needed.

Income Statement

Parag Milk Foods Ltd. has shown strong revenue growth with a significant increase from 2022 to 2025. The Gross Profit Margin has improved over the years, reaching 25.8% in 2025. The Net Profit Margin also increased to 3.5% in 2025, showing profitability after previous years of losses. The EBIT and EBITDA margins have seen positive trends, indicating better operational efficiency. However, there's room for improvement in profit margins compared to industry leaders.

Balance Sheet

The company's Debt-to-Equity Ratio is at a reasonable level, showing a balanced approach to leveraging debt. The Return on Equity (ROE) has improved, reaching 11.6% in 2025, indicating efficient utilization of shareholders' funds. The Equity Ratio stands at 50.4% in 2025, reflecting a solid equity base. Despite improvements, the company should continue to focus on reducing debt to enhance financial stability.

Cash Flow

Free Cash Flow has turned positive with a significant growth rate of 132.4% from 2024 to 2025, indicating better cash management. The Operating Cash Flow to Net Income Ratio is strong, reflecting good cash conversion from earnings. However, the company should continue to strengthen its cash flow generation to support future growth and investment needs.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	34.32B	34.32B	31.39B	28.54B	20.55B	18.26B
Gross Profit	8.85B	8.85B	7.34B	3.07B	-258.34M	2.57B
EBITDA	2.79B	2.53B	2.23B	1.65B	-4.17B	1.38B
Net Income	1.19B	1.19B	905.83M	532.54M	-5.32B	207.05M
Balance Sheet
Total Assets	20.33B	20.33B	18.91B	16.68B	13.95B	16.83B
Cash, Cash Equivalents and Short-Term Investments	250.50M	250.50M	275.74M	152.97M	840.05M	186.51M
Total Debt	6.54B	6.54B	6.45B	6.06B	5.34B	3.92B
Total Liabilities	10.09B	10.09B	9.79B	8.60B	8.41B	7.54B
Stockholders Equity	10.23B	10.23B	9.12B	8.08B	5.54B	9.28B
Cash Flow
Free Cash Flow	0.00	881.90M	379.28M	-2.55B	-1.85B	555.97M
Operating Cash Flow	0.00	2.12B	991.13M	-1.94B	-1.49B	999.52M
Investing Cash Flow	0.00	-1.32B	-529.30M	-875.59M	-260.16M	-468.31M
Financing Cash Flow	0.00	-783.50M	-494.23M	2.12B	2.41B	-685.54M

Parag Milk Foods Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 230.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PARAGMILK, the sentiment is Negative. The current price of 230.45 is below the 20-day moving average (MA) of 232.98, below the 50-day MA of 232.56, and above the 200-day MA of 197.61, indicating a neutral trend. The MACD of -1.08 indicates Negative momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 56.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PARAGMILK.

Parag Milk Foods Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRMOVER	74 Outperform	₹22.55B	36.45		―	-4.20%	0.92%
Sector *	63 Neutral	$20.46B	14.47	-3.60%	3.13%	2.63%	-6.18%
PARAGMILK	63 Neutral	₹27.20B	22.84		0.22%	12.04%	22.28%
TASTYBITE	58 Neutral	₹24.66B	65.77		0.02%	25.08%	127.80%
ADFFOODS	56 Neutral	₹24.13B	34.40		0.55%	13.46%	-6.82%
ATFL	―	₹30.77B	348.88		0.37%	―	―
DIAMONDYD	46 Neutral	₹21.60B	66.28		0.05%	2.77%	-187.53%

Parag Milk Foods Ltd. Corporate Events

Parag Milk Foods Announces Completion of Independent Director’s Tenure

Parag Milk Foods Ltd. announced the completion of the term of Mr. Nitin Dhavalikar as an Independent Director, effective July 27, 2025. His departure marks the end of a decade-long tenure during which he contributed significantly to the company’s board. This change is part of the company’s compliance with regulatory requirements, and the company expressed its gratitude for his valuable guidance and services.

Parag Milk Foods Releases Q1 FY26 Earnings Call Transcript

Parag Milk Foods Ltd. has released the transcript of its earnings conference call for the quarter ending June 30, 2025. The call, held on July 22, 2025, discussed the company’s financial and operational performance. This release is part of the company’s compliance with SEBI regulations, ensuring transparency and communication with stakeholders. The transcript is available on the company’s website, providing insights into the company’s strategic direction and market positioning.

Parag Milk Foods Attributes Volume Surge to Market Conditions

Parag Milk Foods Ltd. has experienced a significant increase in trading volume, which the company attributes to market-driven factors rather than any undisclosed material events. The management has clarified that the fluctuations in share price and volume are purely due to market conditions, assuring stakeholders that all necessary disclosures have been made in compliance with regulatory requirements.