InvestorQ : Why have some of the milk companies like Heritage and Parag Milk rallied sharply in the last few weeks? Are they still good stocks to buy?
Rashi Mehra made post

Why have some of the milk companies like Heritage and Parag Milk rallied sharply in the last few weeks? Are they still good stocks to buy?

Answer
image
sarah Leo answered.
1 year ago
Follow

Shares of companies like Heritage Foods and Parag Milk are up by almost 90% in the hlast one month and are clearly benefiting from the lockdown due to the COVID-19 syndrome. Sales of packaged milk has sharply picked up pace with Indians stocking up to survive the world’s biggest lockdown. The lockdown has suspended public transport and stopped the sale of almost all products except food and some other essential items. Demand for daily essentials such as fresh milk remains unaffected. In addition, doctors have also been recommending people to have more milk to build immunity to viral infections. It is estimated that the supply of packaged milk is up by 15-20% during this period. Milk prices continue to remain at original levels but the cost of inputs has dropped leading to wider margins. However, these benefits are likely to wane once the lockdown eases. Government aims to raise milk output to 254.5 MT by fiscal year 2022 from 187.8 MT in 2019.

5 Views