Parag Milk Foods Ltd. (PARAGMILK) AI Stock Analysis

• Market Cap: ₹31.57B
• Dividend Yield: 0.33%
• Average Volume (3M): 144.83K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 1.15
• Revenue Growth: 13.73%
• EPS Growth: 32.07%
• Country: IN
• Employees: 1,772
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): N/A
• Shares Outstanding: 125,109,550
• 10 Day Avg. Volume: 71,491
• 30 Day Avg. Volume: 144,829
• PEG Ratio: 0.61
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 24.10
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹272.00 ▼(-7.77% Downside)

Parag Milk Foods Ltd. has shown a strong financial recovery with improved profitability and cash flow, which is the most significant factor in the score. Technical indicators suggest a positive trend, though valuation metrics indicate potential overvaluation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Value-added dairy business model

Parag Milk's core model of turning raw milk into branded value-added products (ghee, butter, cheese) supports durable margin capture versus commodity milk. A diversified mix across retail and B2B channels reduces reliance on single markets and enables pricing power over time.

Sustained revenue growth

Consistent mid-teens revenue growth signals expanding distribution, product adoption, and successful penetration of value-added segments. Sustained top-line expansion provides capacity to invest in brands, processing scale, and distribution infrastructure over the next several quarters.

Improving cash generation

A large swing to positive free cash flow indicates improving cash conversion and operational discipline. Stronger FCF reduces reliance on external financing for capex and working capital, increasing long-term financial flexibility and funding optionality for growth initiatives.

Negative Factors

Thin net profit margins

Net margin near mid-single digits remains modest for a branded food player, limiting capacity to absorb input cost volatility and to fund marketing or R&D. Persistently thin margins constrain sustainable return generation versus higher-margin peers.

Leverage reduction needed

While leverage is currently moderate and equity ratio is solid, management's stated need to reduce debt indicates residual financial obligations. Continued leverage limits flexibility for M&A, capex, or weathering commodity shocks, raising medium-term risk if not reduced.

Cash flow consistency risks

Despite a strong year-over-year FCF improvement, cash generation remains sensitive to milk input pricing, seasonality and working capital swings. Durable investment and servicing of obligations require more consistent multi-quarter OCF strength to lower funding risk.

Parag Milk Foods Ltd. Business Overview & Revenue Model

Company Description

Parag Milk Foods Limited processes, manufactures, and sells milk and milk related products in India. It offers ghee, milk, paneer, curd, butter, dairy whitener, and gulab jamun mix products under the Gowardhan brand; and flavored cheese wedges, spreads, slices, and angles, as well as flavored yoghurt, slim milk, cream, whey, and other products under the Go brand. The company also provides whole milk under the Pride of Cows brand name; flavored milk under the Topp up brand; and sports and nutrition products under the Avvatar brand name, as well as offers lactose products. It also exports its products to the United Arab Emirates, Singapore, Mauritius, Oman, Kuwait, Saudi Arabia, Congo, Hong Kong, the Philippines, Sri Lanka, Bangladesh, Maldives, the United States, Thailand, Nepal, Bhutan, Ghana, Malaysia, Qatar, etc. Parag Milk Foods Limited was founded in 1992 and is headquartered in Mumbai, India.

How the Company Makes Money

Parag Milk Foods generates revenue primarily through the sale of its dairy products, which include liquid milk, cheese, yogurt, and ghee. The company operates on a business model that includes both direct sales and distribution through retail channels. Key revenue streams come from its branded products, particularly the 'Pride of Cows' premium milk and other value-added dairy items. Additionally, Parag Milk Foods has established significant partnerships with various retailers and distributors, enhancing its market reach. The company's commitment to quality and innovation, along with a growing consumer preference for healthy and nutritious dairy options, contributes to its earnings.

Parag Milk Foods Ltd. Financial Statement Overview

Summary

Parag Milk Foods Ltd. shows a positive financial turnaround with strong revenue growth and improved profitability. The balance sheet is stable but could benefit from reduced leverage. Cash flow management has improved significantly, supporting future growth.

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	35.26B	34.32B	31.39B	28.54B	20.55B	18.26B
Gross Profit	8.99B	8.85B	7.34B	5.42B	-2.43B	4.27B
EBITDA	2.83B	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	0.00	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	0.00	6.54B	6.45B	6.06B	5.34B	3.92B
Total Liabilities	-10.23B	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	-196.81M	-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: 294.90
• 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:PARAGMILK, the sentiment is Negative. The current price of 294.9 is above the 20-day moving average (MA) of 269.87, above the 50-day MA of 294.64, and above the 200-day MA of 258.86, indicating a bearish trend. The MACD of -11.98 indicates Positive momentum. The RSI at 35.14 is Neutral, neither overbought nor oversold. The STOCH value of 26.13 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	72 Outperform	₹30.28B	44.28	―	―	-8.29%	4.70%
PARAGMILK	65 Neutral	₹31.57B	22.58	―	0.33%	13.73%	32.07%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TASTYBITE	60 Neutral	₹17.68B	56.96	―	0.02%	17.13%	104.51%
ADFFOODS	58 Neutral	₹19.40B	25.24	―	0.57%	6.31%	-3.89%
DIAMONDYD	54 Neutral	₹26.67B	-59.81	―	0.04%	1.76%	-214.88%

Parag Milk Foods Ltd. Corporate Events

Parag Milk Foods to Close Trading Window Ahead of December Quarter Results

Parag Milk Foods Ltd. has announced that its trading window for dealing in the company’s securities will be closed for designated persons and their immediate relatives from 1 January 2026 until 48 hours after the declaration of its unaudited financial results for the quarter and nine months ended 31 December 2025. The move, undertaken in line with SEBI’s Prohibition of Insider Trading regulations and the company’s internal insider trading policy, aims to prevent trading on unpublished price-sensitive information and underscores the dairy company’s adherence to regulatory compliance and governance standards ahead of its upcoming financial disclosures.

Parag Milk Foods Releases Q2 FY26 Earnings Call Transcript

Parag Milk Foods Ltd. has released the transcript of its Q2 FY26 earnings conference call, highlighting the company’s financial and operational performance for the quarter and half-year ending September 30, 2025. The release of this transcript provides stakeholders with insights into the company’s current market position and future strategies, reflecting its commitment to transparency and regulatory compliance.

Parag Milk Foods Releases Q2 2025 Financial Results

Parag Milk Foods Ltd. has released an investor presentation detailing its unaudited financial results for the quarter and half-year ending September 30, 2025. The presentation, which will be discussed in a post-earnings conference call with analysts and investors, highlights the company’s financial performance and is available on their website. This announcement is part of the company’s compliance with SEBI regulations and aims to provide transparency to stakeholders.

Parag Milk Foods Ltd. Updates Financial Results After Reporting Error

Parag Milk Foods Ltd. announced a correction to its financial results for the quarter and half-year ended September 30, 2025, after an older version of the Consolidated Statement of Cash Flows was inadvertently included in the initial release. The corrected financial results have been provided, and the company expressed regret for any inconvenience caused by the error.

Parag Milk Foods Releases Q2 2025 Financial Results

Parag Milk Foods Ltd. has released an investor presentation detailing its unaudited financial results for the quarter and half-year ending September 30, 2025. This presentation, which will be discussed in a post-earnings conference call with analysts and investors, provides insights into the company’s financial performance and strategic direction.