Kwality milking the good news

Kwality (formerly Kwality Dairy) is showing a lot of traction today. With volumes up almost 1.5 times, the stock is currently up almost 7% at Rs.41.55, with an intra day high at Rs.42.60. Its 52-week high is at Rs.58.

The excitement on the counter is after the company announced that it has signed a MoU with the Govt of Jharkhand for setting up a project of Milk and Milk Products at Ranchi with minimum investment of Rs 100 crore and Employment Generation would be from 300 to 500. The project is proposed to commence in Financial Year 2018-19.

In addition to investment of Rs 100 crore, it is also proposed that Kwality will make investment towards Corporate Social responsibility (CSR) besides arranging skill upgradation/training of youths working population, running I.T.I./Polytechnic etc. in PPP or Private mode as per policy of the State Govt, or agreement arrived after mutual consent.

To meet growing demand, this company with four milk processing plants in Haryana, Rajasthan and Uttar Pradesh it has acquired additional unit in Uttar Pradesh as also awarded job work to third parties in the recent past. With rising PE as well as strategic interest in Indian dairy industry as also rising milk consumption, business remains an attractive opportunity.