Why This Small Cap Stock Surged 14% Today

Dodla Dairy shares surged to an all-time high, skyrocketing 14% on Monday after the firm achieved its quarterly revenue guidance for the first time.

What Happened? The dairy maker recently reported a 14.8% rise in revenue from operations, which reached ₹823 crore in the June quarter compared to the same period last year. This growth in operating revenue was attributed to a surge in value-added products and fat product sales during the quarter, supported by an extended summer season, a diverse product portfolio, and strong brand recall, according to an exchange filing.

See Also: Why This Tata Stock Is Crashing 8% Today

Moreover, Dodla Dairy’s net profit jumped 40% from a year ago to ₹35 crore in Q1FY24. Operating profit margin, or earnings before income tax depreciation and amortization margins, also saw an improvement of 104 basis points, reaching 7.3%. The company’s margins were bolstered by declining milk prices, raw material costs, and other expenses during the quarter.

During the first quarter, the company’s milk sales increased by 6.1% compared with the same period a year ago, while its curd sales grew by 3.1%.

Price Action: Dodla Dairy’s share price climbed 14.1% to ₹876.25 in afternoon trade on Monday.

Read Next: Mukul Agrawal Raises Stake In This Small Cap Stock That Has Gone Up 60% YTD

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Comments
Loading...
Posted In: EarningsEquitiesNewsMarketsMoversDodla Dairy

Loading...