Milkfood Ltd Share Price: Shares of fast-moving consumer goods (FMCG) major Milkfood Ltd rallied 20 per cent on Thursday, June 20, after the company announced that it may consider announcing an interim dividend and a bonus issue soon. The FMCG major declared that it will conduct its board meeting on June 25 where it may consider approving the dual corporate action.
In a regulatory filing to the stock exchanges, Milkfood said, ‘’We hereby inform you that a Meeting of the Board of Directors of the Company will be held on Tuesday, the 25th day of June, 2024 to inter alia, consider and approve the following matter:
1. The proposal for payment of interim dividend if any, on the equity shares of the company.
2. The proposal for bonus issue along-with other matter, if any, as may be permitted under applicable laws, subject to such regulatory/statutory approvals as may be required, including the approval of the shareholders of the Company.
3. The proposal for sub-division of company’s equity shares having face value of ₹10/- each and matters related thereto, as may be permitted under applicable laws, subject to such regulatory/statutory approvals as may be required, including the approval of the shareholders of the company.''
On Thursday, shares of Milkfood opened at ₹576.00 and gained 17.86 per cent to hit an intra day high of ₹678.90 before settling 20 per cent higher at ₹678.90 apiece on the BSE. According to Trebdlyne data, Milkfood has given 3.9 per cent returns to investors in the last one month. However, in the last three-year period, Milkfood has given multibagger returns of 112.67 per cent.
According to domestic brokerage firm ICICIdirect, Milkfood share price has risen 16.2 per cent over the last six months and 19.07 per cent in the last one year. Milkfood competes with other FMCG majors such as Varun Beverages, Parag Milk Foods, Nestle India, among others.
Milkfood is a Punjab-based company, controlled by the Jaiswal family through L P Investments, a subsidiary of Jagatjit Industries, was incorporated in March, 1973. The FMCG's main products are milk powder, ghee, baby food, ice-creams and yoghurt. It is engaged in the manufacture and sale of dairy products.
The Nifty FMCG index settled 0.04 per cent higher at 56,669.65 on Thursday. The domestic benchmark equity indices, Sensex and Nifty 50, settled higher after struggling through some volatility during the trade. Metal, real estate, and bank stocks led the indexes, despite a lack of strong global indications.
The 30-share BSE Sensex ended higher by 141.34 points or 0.18 per cent at 77,478.93 level while the Nifty 50 closed at 23,567.00 level, up 51.00 points or 0.22 per cent. The Nifty has logged record closing highs in five out of six sessions, while the Sensex has ended at all-time highs for five consecutive sessions.
‘’Looking ahead, a decisive close above 23,600 in Nifty could trigger fresh upward momentum, potentially pushing the index to 24,000 levels. On the downside, 23,400 is expected to act as strong support. Besides banking and IT, themes like sugar, fertilizers and chemical are showing good traction on the expected lines. Traders should align their positions accordingly,'' said Ajit Mishra – SVP, Research, Religare Broking Ltd.
