The stock slipped as much as 4.21% to an intraday low of Rs 191.25 on the NSE. However, the decline later moderated, with the shares trading broadly flat around Rs 200 apiece.

The Thursday dip comes after a strong run since listing. Milky Mist made its market debut on August 18 at Rs 165 per share, an 18% premium to its IPO price of Rs 140. The stock extended its gains in the following trading session, rising another 10% and taking investors on a strong post-listing ride.

The strong debut was backed by an overwhelming response to Milky Mist Dairy Food’s Rs 1,553 crore IPO, which was subscribed a staggering 56.12 times overall.

The issue comprised a fresh issue of 10.20 crore shares worth Rs 1,428 crore and an Offer for Sale (OFS) of 89 lakh shares valued at Rs 125 crore. The IPO was priced in the range of Rs 133-140 per share.

Live Events

Interestingly, investor enthusiasm was already visible before the listing. Milky Mist’s unlisted shares were commanding a grey market premium (GMP) of around 14% over the IPO price, signalling strong expectations ahead of its debut.
Following the sharp post-listing gains, the company’s market capitalisation currently stands at around Rs 15,369 crore.

So, should you buy, sell or hold Milky Mist shares?

While Milky Mist’s business fundamentals remain encouraging, analysts believe investors may need to exercise caution after the stock’s strong listing performance.

Shivani Nyati, Head of Wealth at Swastika Investmart, highlighted the company’s 33.6% revenue CAGR, improving margins and 32% return on equity (RoE) as key strengths. She also pointed to Milky Mist’s leadership in the value-added dairy segment as a factor supporting its premium valuation.

Adding to investor confidence, Temasek-backed Jongsong Investments invested Rs 482 crore in the pre-IPO round at Rs 139.76 per share for a 5.2% stake. According to Nyati, the investment offers additional validation of the company’s growth prospects and IPO valuation.

However, the valuation is where the stock may face its biggest challenge. At around 85 times FY26 earnings, Milky Mist is trading at a substantial premium to the dairy sector’s average P/E of around 52.5 times, Nyati noted.

“While the premium is supported by its FMCG-like margins and value-added product mix, the strong listing may lead to some profit-booking,” she said.

Her view remains positive on the company’s long-term business prospects, but she cautioned investors against chasing the stock after its sharp rally.

The strategy for investors, according to Shivani Nyati: Hold the stock, maintain a stop-loss at Rs 150 and look to add on meaningful dips rather than buying aggressively at current levels.

Strong financial performance

Milky Mist’s latest financial numbers provide further support to its growth story. For the year ended March 2026, the company reported revenue of Rs 3,145 crore, marking a 33.6% year-on-year growth. More strikingly, its net profit jumped 175.7% YoY to Rs 127 crore.

With strong revenue growth, expanding profitability and a dominant position in value-added dairy products, Milky Mist has emerged as one of the more closely watched new-age dairy stocks. However, after its sharp post-IPO gains, the key question for investors is no longer simply whether the business is attractive, but whether the current valuation leaves enough room for further upside.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)