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.

Take Stock Of The Week Ahead

Get all the latest Share Market trends and news to set you up for the week ahead.

You have successfully subscribed.

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

Posted In: EarningsEquitiesNewsMarketsMoversDodla Dairy