Ease in margins seen from Q4 for dairy cos; stay stock selective: Analysts

Dairy stocks: Analysts see the benefits of price hikes to begin accruing from the March quarter onwards, while the financial year 2023-24 (FY24) will be a steady year for the industry's margins

Shares of dairy companies have staged a steady turnaround in the last few months as related companies announced price hikes to fight rising costs of milk procurement and fodder.

Scrips of Dodla Dairy, Heritage Foods, Parag Milk Foods and Vadilal Industries have risen 13-94 per cent so far in the financial year 2022-23 (FY23). By comparison, the benchmark Sensex and Nifty50 indices are up around 5 per cent each. 

Analysts see the benefits of price hikes to begin accruing from the March quarter onwards, while the financial year 2023-24 (FY24) will be a steady year for the industry's margins.