Systematix’s bullish stance hinges on Dodla’s expanding Value-Added Products (VAP) business in India and strong performance in its African markets, which are forecast to drive low-teens revenue growth through FY25–28. The firm highlights that revenue Compound Annual Growth Rates (CAGR) could exceed 15% for India VAP and 18% for its Africa operations, underpinning the positive outlook.

In valuing Dodla Dairy, Systematix uses a price-to-earnings (P/E) ratio of about 26x on September 2027 earnings estimates, signaling confidence in the company’s geographic expansion, return ratios and earnings potential. The broker also emphasises incremental revenue visibility from newly commissioned assets, including a greenfield manufacturing plant in Maharashtra and benefits from the strategically acquired Osam Dairy business.

Analysts expect the business to sustain medium-term margins near 10%, supported by an improving product mix, driving better realisations and profitability even amid competitive pressures in the dairy sector. This balance of growth and margin stability is seen as critical for investors evaluating Dodla’s position in the broader dairy market.