Milkfood (MLKFOOD) | News Based Sentiment Analysis

• On September 26, 2025, Milkfood Ltd. reported a loss of Rs 0.69 crore for the quarter ending June 30, 2025, ending a three-quarter profit streak. This marked a significant downturn, with revenue declining by 50.06% quarter-on-quarter to Rs 79.21 crore – the lowest level in three years, signaling a weakening financial position.
• Earlier in the month, on September 12, 2025, the company reported a 17.55% year-over-year revenue decline to ₹79.21 crore and a -216.95% drop in net profits to ₹0.69 crore, resulting in a quarterly loss. This continued the negative trend highlighted in previous reports.
• Following the disappointing Q1 FY2026 results, the stock price decreased by 1.87% to Rs 78.50 from Rs 80.00 on September 26, 2025. The P/E ratio stood at 58.88, and the TTM EPS was 1.33, raising concerns about a high valuation despite declining profitability.
• At the 52nd Annual General Meeting on September 25, 2025, shareholders approved the re-appointment of Mrs. Preeti Mathur as Director and Mr. Sudhir Avasthi as Managing Director for a five-year term, effective July 1, 2026. Mrs. Jyotsna Bhatnagar was also appointed as a Non-Executive Independent Director for five years.
• Also on September 25, 2025, the interim dividend of INR 2.50 per equity share (25% on a face value of INR 10), previously approved on June 25, 2024, was confirmed at the AGM. While a standard corporate action, this dividend is unlikely to offset the broader negative financial performance.
• The trading window for dealing in Milkfood Ltd. shares will close from October 1, 2025, until 48 hours after the announcement of the un-audited financial results for the quarter ending September 30, 2025, as announced on September 23, 2025, in compliance with SEBI regulations.

The Investment Story: September was a difficult month for Milkfood Ltd., characterized by substantial financial losses, a declining revenue trend, and a high P/E ratio despite poor performance. Leadership changes were approved, but these are unlikely to immediately address the core financial challenges.

What It Means for Investors: Investors should be cautious, as the company's financial results indicate a deteriorating performance. The high P/E ratio and declining profitability raise concerns about the stock's valuation, and the dividend is unlikely to compensate for these negative trends.

Looking Ahead: Investors should closely monitor the company's financial results for the quarter ending September 30, 2025, when they are announced, and pay attention to any further analyst commentary. The trading window closure suggests upcoming financial disclosures will be critical.

The Bottom Line: Milkfood Ltd. remains a high-risk investment in September 2025. The combination of poor financial results, a high valuation, and declining profitability makes it a challenging case for investors seeking stable returns.