A leading dairy products manufacturer and supplier, renowned for providing essential ingredients to major religious institutions across South India, faces severe market turbulence. The company’s stock plummeted 11.4% following the arrest of its chairman and managing director by a special investigation team, amid allegations of supplying adulterated ghee to a prominent temple for their sacred prasadam preparation.
Share Price Movement
The share price of Dindigul Farm Products Limited went down 11.35 percent to Rs. 36.15 per share on Tuesday, a decline from its previous close of Rs. 40.78 per share. The market capitalisation now stands at approximately Rs. 92 crore as of February 11, 2025.
Recent Update
Shri Raju Rajasekaran, the Chairman and Managing Director of Dindigul Farm Product Limited and Managing Director of A R Dairy Food Private Limited, was arrested by a Special Investigation Team. The company is accused of supplying adulterated ghee to the Tirumala Tirupati Devasthanams (TTD) for making laddus in July 2024. Along with Rajasekaran, a few others were also arrested.
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Financial Highlights
In FY2024, the company reported revenue of Rs. 85.53 crore, reflecting a 4.8% growth from Rs. 81.58 crore in FY2023. Profit surged 69.1% to Rs. 8.74 crore from Rs. 5.17 crore in the previous year, indicating strong operational efficiency and profitability improvement.
Competitors
Dindigul Farm Product Ltd. processes whole and skimmed milk into dairy ingredients like milk protein concentrates, skimmed milk powder, and dairy whitener. Its top competitors include Aveer Foods, Sharat Industries, Kohinoor Foods, Srivari Spices Food, Ovobel Foods, and Flex Foods.
Dindigul Farm Products is currently trading at a P/E of 10.1, which is below the industry P/E of 34.39.
Market Outlook
India’s dairy industry is set for significant growth, driven by rising demand and expanding production. The market is projected to nearly double to USD 227.53 billion by 2030. Domestic milk consumption already exceeds 210 million metric tons, highlighting strong demand. The cream market is also set to rise, reaching INR 23.0 billion by 2033. With lower investment needs and high profitability, dairy farming remains a lucrative sector, ensuring steady expansion in the coming years.
Written By Fazal Ul Vahab C H
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