Milky Mist shares hit 5% upper circuit; here's what analysts say

Shares of Milky Mist Dairy Food Ltd extended their gains for the second consecutive session on Friday, rising 5 per cent to hit the upper price band of Rs 293.30 on BSE. The stock has gained 36.51 per cent over the past two weeks.

Bourses BSE and NSE have placed the securities of Milky Mist under the short-term ASM (Additional Surveillance Measure) framework. Exchanges place stocks under short-term or long-term ASM frameworks to caution investors about unusual price movements and heightened volatility.

Ravi Singh, Chief Research Officer at Master Capital Services, said, "Milky Mist's stock hit a fresh peak on Friday, extending its strong recent rally. The stock has gained around 60 per cent in the past 20 days, driven by growing investor interest in the company's expansion into high-protein dairy products. The company expects the high-protein segment to grow at 50-60 per cent annually and is introducing a new high-protein paneer targeting rising consumer demand. Management also expects whey protein growth to exceed earlier estimates.

He added, "Investor sentiment has further improved with expectations around the company's new manufacturing plant in Tamil Nadu, which is likely to support capacity expansion and future growth. The combination of strong segment prospects, new product launches and capacity expansion has supported the sharp re-rating in the stock."

Singh sees an upside target of Rs 320 for the stock in the near term and suggested a stop loss of Rs 265 for the trade.

On the other hand, AR Ramachandran, Sebi-registered research analyst at Tips2trades, advised investors to book profits at current levels.

According to him, "Milky Mist is bullish but overbought on daily charts with next resistance at Rs 317. Investors should keep booking profits as a daily close below the support of Rs 272 could trigger a fall towards Rs 227 in the near term."

Q1 earnings

Milky Mist reported revenue of Rs 973.4 crore for Q1 FY27, marking a 43.6 per cent year-on-year (YoY) increase, led by growth in paneer, cheese and curd.

Revenue from paneer rose 34 per cent YoY, while cheese and curd revenue increased 38 per cent and 27 per cent, respectively. Yogurt revenue jumped 153 per cent, while ice cream revenue grew 60 per cent.

EBITDA increased 77 per cent YoY to Rs 143.8 crore, with the EBITDA margin expanding to 14.8 per cent from 12 per cent. Gross margin improved 275 basis points to 34.2 per cent.

Profit after tax (PAT) stood at Rs 64.7 crore, compared with Rs 6.5 crore in Q1 FY26. Finance costs declined 29 per cent to Rs 24 crore.