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

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.