Parag Milk Foods (PMFL) is one of the leading manufacturers and marketers of dairy-based branded foods in India. The company has well recognized brands like ''Gowardhan'' and ''Go'' in its portfolio and has a pan-India network comprising of 15 depots, 104 super stockists and over 3,000 distributors. It has also been growing in the cheese segment where it currently has a market share of 32%.

Angel Broking has recommended 'Subscribe' to IPO of Parag Milk Foods. Commenting on the investment rationale, the stock broker said, '' At the upper end of the issue price band, the company is seeking a P/E multiple of 37.6x its 9MFY2016 annualized earnings based on pre-issue outstanding shares. This is lower than its close peer Prabhat Dairy's valuation, which is trading at a higher multiple of 49.8x its 9MFY2016 annualized earnings (despite of PMFL's better return ratios).

Further, retail investors will be given a discount of Rs 12/share. Considering the company has a diversified product basket, strong brands and wide distribution network, we believe that the company will continue to perform well on both the top-line and the bottom-line front. Hence we recommend investors to Subscribe to the issue from a longer term perspective.''

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