PRABHAT closes at 78.9 on 22.01.2019 with a fall of -15% on
the news of stake selling. As per latest media report: “Lactalis, a French dairy products
corporation, has entered into a definitive agreement to acquire
Mumbaibased Prabhat Dairy’smilk processing business for about₹1,700 crore. The French group willbe making the acquisition throughits whollyowned Indian subsidiary, Tirumala Milk Products, by
Wayof a slump sale.Prabhat Dairy will also sell its entire stake in Sunfresh Agro Industries, a stepdown subsidiary,through a share purchase agreement, the company said in a
statement “
Prabhat Dairy intends to further develop its cattle feed business
and expand into allied businesses
such as animal nutrition and animal genetics. Earlier on January 8, Prabha
t dairy had signed a joint development agreement Denmarkbasedith Dansk Landbrugs Grovvareelskab (officially DLG Group) as
part of its plans to foray into anmal nutrition business. This inludes cattle feed, nutrition supplements and animal genetics.
If the above words stand true, It’s
a good bet for Long Term Investor. Prabhat Dairy Ltd is now Trading at x1.3 of its EPV. We find its valuations around 58 for Entry
with 2-3 years holding period.
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