Milky Mist Stock Soars 10% on Market Debut, Surges 30% From IPO Price: Is It Time to Buy, Sell, or Hold?

Milky Mist Dairy Food has made a notable entrance into the Indian capital markets, listing on the NSE at Rs 165 per share, which is approximately an 18 per cent premium over its IPO price of Rs 140. The stock further surged by 10 per cent to reach an upper circuit limit of Rs 181.50, marking an impressive increase of nearly 30 per cent from the original IPO price. The company’s market capitalisation is currently estimated to be around Rs 13,973 crore, buoyed by substantial trading volumes that saw over 9 crore shares traded, amounting to Rs 1,581 crore by 11:30 am on the listing day.

The IPO was met with overwhelming enthusiasm, being subscribed 56.12 times, which speaks to the high demand for the company’s shares. Notably, prior to its public debut, the grey market showed a positive sentiment with unlisted shares trading at a premium of about 14 per cent compared to the IPO price. Analysts suggest that while the strong listing performance is encouraging, investors should exercise caution, particularly given the relatively high valuations compared to industry averages.

Shivani Nyati of Swastika Investmart highlights Milky Mist’s robust financial metrics, including a 33.6 per cent revenue CAGR and 32 per cent return on equity, which underpin its healthy market positioning. However, she also notes the stock’s valuation at approximately 85 times FY26 earnings, which exceeds the dairy sector average. Investors are advised to hold onto their positions, set a stop-loss at Rs 150, and be prepared to add more shares during significant price corrections, rather than chasing the stock at inflated levels following its listing.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)