Milky Mist rise 30% after IPO: Should investors hold or wait?

Milky Mist Dairy Food shares have extended their strong debut on the stock market, rising nearly 30% over the IPO issue price of Rs 140. The stock listed at Rs 165 on Tuesday, an 18% premium, and was trading at Rs 181.45, up around 9.97% from its previous level and nearly 30% above the IPO price.The strong debut and subsequent rise may leave IPO investors wondering what to do next: book profits after the sharp rally, continue holding, or buy more shares.Shivani Nyati, Head of Wealth at Swastika Investmart, said that the business outlook remains positive, but investors should not chase the stock at current levels.MILKY MIST HAS STRONG GROWTH STORYNyati said Milky Mist's strong fundamentals support its premium positioning in the dairy sector. The company has delivered a 33.6% revenue compound annual growth rate (CAGR), while its margins have been expanding. Its return on equity (RoE) is around 32%, according to the expert.Milky Mist's positioning in the value-added dairy segment is another factor supporting the company's growth outlook. Unlike traditional dairy products, value-added products typically include categories such as cheese, paneer and other processed dairy products. The company also received a boost from institutional investor interest before its IPO. Temasek-backed Jongsong Investments invested Rs 482 crore in Milky Mist at Rs 139.76 per share in the pre-IPO round for a stake of around 5.2%.Nyati said this provides additional validation to the company's growth prospects and the valuation at which it entered the market.BUT THE STOCK IS NOW EXPENSIVEThe sharp post-listing rally has also pushed Milky Mist's valuation higher.Nyati pointed out that the stock is trading at around 85 times FY26 earnings, significantly above the dairy sector's average P/E of around 52.5 times.The premium valuation is partly supported by Milky Mist's FMCG-like margins and its focus on value-added dairy products. However, the sharp rise in the share price means investors now have to pay a considerably higher valuation than those who bought into the IPO.This is where investors need to be cautious.SHOULD INVESTORS HOLD OR BOOK PROFITS?For investors who received Milky Mist shares in the IPO, the strong listing and subsequent rally have already created substantial gains.Nyati's view is to hold rather than rush to sell, but also avoid buying aggressively after the sharp rise."Our view remains positive on the business, but investors should avoid chasing the stock at current levels," Nyati said.For existing shareholders, she recommends holding the stock with a stop-loss of Rs 150.Investors who did not receive the IPO allotment or are looking to buy the stock after listing may therefore want to wait for a meaningful correction rather than enter simply because the shares are continuing to rise.Nyati's recommendation is to consider adding on meaningful dips.WHAT SHOULD MILKY MIST INVESTORS DO NOW?For IPO investors sitting on gains, the key takeaway is that the strong business outlook does not necessarily mean the stock is attractive at every price.Milky Mist has demonstrated strong revenue growth, improving margins and a strong position in value-added dairy. But at around 85 times FY26 earnings, its valuation has moved well above the sector average.That creates a balancing act for investors: the business remains attractive, but the stock has already priced in a significant amount of optimism.For now, the expert view is to hold existing shares, keep a stop-loss of Rs 150 and avoid chasing the stock after its sharp post-listing rally. Fresh investors can consider entering on meaningful dips rather than buying after a near-30% gain from the IPO price.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsPublished On: Aug 18, 2026 10:43 IST