ICICI Securities: Dairy Sector Outlook CY21- Sector At Cyclical High Margins
A worker assists a milk vendor in pushing his bicycle from a boat in Bihar, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

ICICI Securities: Dairy Sector Outlook CY21- Sector At Cyclical High Margins

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Due to reduction in milk procurement prices, the dairy companies under ICICI Securities’ coverage reported life-high margins in CY20.

While there was some impact on revenues due to lower sales to Hotels, Restaurants, Cafes and institutions, the B2C sales were not impacted in CY20.

Milk procurement prices declined due to (1) reduction in demand from HoReCa and B2B consumers and (2) normal monsoon as well as flush season. Global SMP prices declined c.10% which also impacted milk prices in India. In H1 CY21, ICICI Securities model the dairy companies to continue to report life-high margins.

Click on the attachment to read the full report:

ICICI Securities Dairy Sector Outlook 2021.pdf


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