Umang Dairies :(Face Value Rs5) : A promising stock for long term invetors availaible at CMP of Rs 62-63 Long Term Target for 1 year Rs 90

About Company:

Umang Dairy is in business of milk and milk related dairy products promoted by J.K Group having interest in various field.  Umang Dairy Plant is situated around 120 K.M from Delhi in U.P Sate .It has capacity to process 800000 litre milk daily   0ut of which 3 litre milk drying plant and 50000 litre is proceed in liquid. The milk is collected from 12000 farmers from 300 villages.

It offers variety of milk products:               

- SKIMMED MILK POWDER (SMP),- WHOLE MILK POWDER (WMP),- DAIRY CREAMERS,- DAIRY WHITENERS,- TEA & COFFEE PREMIXES,  (Especially Developed for Vending Machines),- PURE GHEE , FRESH CREAM, BUTTER.

“DAIRY TOP “Instant Dairy Whitener is the undisputed market leader in its segment.

Other Major Brands are:

WHITE MAGIK DAIRY CREAMER

- MILK STAR DAIRY WHITENER

- UMANG SKIMMED MILK POWDER
UMANG Danedar Ghee

Financials:

	2014	2013	2012	2011	2010
Revenue	216.38	173.8	150.22	102.22	50.57
Other Income	0.27	0.55	0.2	0.14	0.04
Total Income	216.65	174.36	150.42	102.36	50.61
Expenditure	-205.97	-156.07	-134.68	-97.13	-50.89
Interest	-0.54	-0.23	-0.24	-0.31	-0.3
PBDT	10.15	18.06	15.51	4.92	-0.58
Depreciation	-1.49	-1.89	-1.68	-1.6	-1.44
PBT	8.65	16.17	13.83	3.31	-2.02
Tax	-2.69	-3.87	--	--	--
Net Profit	5.96	12.3	13.83	3.31	5.42
Equity	11	11	11	11	11
EPS	2.71	5.59	6.29	1.51	2.46
CEPS	3.39	6.45	7.05	2.24	3.12
OPM %	4.94	10.52	10.48	5.12	-0.55
NPM %	2.75	7.08	9.21	3.24	10.71

 

In 2015 Company achieved revenue of 250 crores with EPS pf 3.87.

Company is almost debt free and has declared 20% dividend for FY 14-15.

Dairy industry is experiencing a growth of approx. 25% in near future and that should help in increase in demand of company products. Going forward Umang Dairy can delivered EPS of approx. 5 in next one year stock is available at forward PE multiple of 11-12 at current market price of 56-61.

Long term investor can invest in the stock for returns of around 20to25% in a year.2 year Target Rs 90