SBI Securities recommends investors subscribe to Milky Mist Dairy’s ₹2,035 crore IPO, citing the company’s shift towards premium value-added dairy products and rapid recent growth, with plans to expand operations and strengthen its market position.
SBI Securities has recommended that investors subscribe to Milky Mist Dairy Food’s initial public offering, arguing that the company’s shift towards value-added dairy products gives it stronger pricing power and better margins than a traditional liquid milk business. The brokerage said the Erode-based group has delivered rapid growth in recent years, with revenue, EBITDA and profit after tax all rising sharply between FY24 and FY26, while its EBITDA margin improved to 13.7% in FY26.
That optimism comes as Milky Mist moves through a ₹2,035 crore IPO after securing approval from the Securities and Exchange Board of India, according to The Times of India. The issue includes a fresh share sale of up to ₹1,785 crore and an offer for sale of up to ₹250 crore by the promoters, Sathishkumar T and Anitha S. The company plans to use most of the fresh proceeds to strengthen the balance sheet and expand operations, including debt repayment and modernisation of its Perundurai plant.
Milky Mist has built its business around branded dairy items such as paneer, cheese, curd, yoghurt, butter, ghee and ice cream, rather than selling liquid milk. The Times of India reported that the company sources milk directly from more than 67,000 farmers and operates automated facilities, with paneer and curd priced above many rival products. Its newest categories contributed meaningfully to revenue in FY25, while core products still made up the bulk of sales.
SBI Securities valued the IPO at 84.9 times FY26 earnings at the top end of the price band, a level that suggests investors are paying for future growth rather than current profitability. Even so, the brokerage expects debt repayment of ₹497 crore, together with better capacity use, to reduce interest costs and support stronger earnings in the years ahead. Industry observers quoted by IPO Market have also pointed to Milky Mist’s margin profile as broadly in line with listed dairy peers, reinforcing the view that the company is aiming to compete more like a premium FMCG brand than a commodity dairy processor.
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