List of Best Dairy Stocks in India 2025

Interested in investing in the dairy sector of the fastest-growing economy in 2024? From being a milk-deficit nation to an exporter of milk products, the Indian dairy industry has grown remarkably. The Indian dairy industry presents a lot of investment opportunities for investors, especially in companies associated with best dairy food brands in India that have strong market presence and potential for growth.

In this blog, we will discuss dairy stocks based on market capitalization, the benefits of investing in them, factors to consider before investing, and their recent performance.

Overview Of the Dairy Industry in India

India’s dairy industry contributes over 4% to the GDP and is a major sector of the Indian economy. The sector was worth about $108 billion in 2022 and is estimated to reach a valuation of $170 billion by 2028 at a CAGR of 8.62%.

The industry has faced various challenges, including the absence of an efficient supply chain, fluctuating milk prices, geographical constraints, etc. However, technology plays a key role in optimizing cold storage and supply chains. Due to a rise in disposable incomes, there is a high demand for value-added dairy products in urban areas. There has been a growing emphasis on sustainable and organic dairy farming to reduce the negative impact on the environment. 

Top Dairy Stocks Based on Market Capitalization

The top dairy stocks in 2025 are:

S.No.	Dairy stocks
1	Hatsun Agro Product Ltd.
2	Dodla Dairy Ltd.
3	Heritage Foods Ltd.
4	Vadilal Industries Ltd.
5	Parag Milk Foods Ltd.
6	Vadilal Enterprises Ltd.
7	Milkfood Ltd.
8	Umang Dairies Ltd.

The dairy stocks have been listed in descending order based on their market capitalization in the table below:

Company	Market Capitalization (In crores)	Current Market Price (In INR)	52 Week High Price (In INR)	52-Week Low Price(In INR)
Hatsun Agro Product Ltd.	28,983	1,301	1,400	956
Dodla Dairy Ltd.	7,455	1,236	1,346	651
Heritage Foods Ltd.	5,054	545	728	209
Vadilal Industries Ltd.	2,876	4,000	5,143	2,133
Parag Milk Foods Ltd.	2,367	198	290	150
Vadilal Enterprises Ltd.	503	5,850	6,000	3,126
Milkfood Ltd.	419	172	215	123
Umang Dairies Ltd.	255	116	165	64

Read Also: List Of Best FMCG Stocks In India 2025

Best Dairy Stocks in India Based on Market Capitalization – An Overview

A brief overview of the best dairy stocks in India is given below:

1. Hatsun Agro Product Ltd.

Hatsun Agro Product Ltd. was established in 1970 and is India’s largest private dairy company. The company has the capacity to process 2.5 million liters of milk per day. The company’s product range includes Arokya milk, Arun ice cream, Hatsun curd, etc. It has 20 processing plants across India and exports its products to 42 countries worldwide. The company’s headquarters is in Chennai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-17.55%	-19.91%	115.57%

2. Dodla Dairy Ltd.

Dodla Dairy Ltd. is a renowned dairy company that was incorporated in 1995. The company adopts an integrated business model, focusing on the procuring, processing, and distributing dairy products. Dodla has 150 chilling centers and 14 processing plants, which can process 2.2 million liters of milk daily. The products include fresh milk, curd, ghee, butter, and paneer. The company’s headquarters is in Hyderabad.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
32.93%	97.56%	101.08%

3. Heritage Foods Ltd.

It is one of the leading companies in the Indian dairy sector, founded by N. Chandrababu Naidu in 1992. The company follows a farm-to-home business model wherein it takes care of the quality of milk, from the procurement of milk to its delivery to households. Heritage has a processing capacity of 2.57 million liters of milk daily and offers a product line that includes milk, curd, ghee, and buttermilk. The company has a large southern Indian footprint and reaches more than 1.5 million households through 1,25,000 retail outlets.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
31.66%	91.50%	123.49%

4. Vadilal Industries Ltd.

Vadilal Industries Ltd is one of the oldest and most renowned ice cream manufacturing companies in India. It was established in 1907. The company offers a wide product range, which includes ice creams, frozen desserts, and processed foods. Its ice cream division caters to millions of customers across India through a network of over 50,000 retailers and 1,500 distributors with over 150 flavors. Further on, Vadilal exports processed foods to over 45 countries. The company’s headquarters is located in Ahmedabad.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
39.76%	289.81%	351.74%

5. Parag Milk Foods Ltd.

Parag Milk Foods Ltd. was established in 1992. They can process approximately 1,500,000 liters of milk every day with the help of their modern machinery and produce a number of products such as milk, cheese, ghee, and yogurt. Parag is known for its solid distribution network, which sells its products in different cities in India and also exports milk and other products to other countries worldwide. In 2017, the company started selling whey protein. It is also the largest producer of cow ghee under the brand name “Govardhan.” The company’s headquarters is in Mumbai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-19.86%	40.47%	10.82%

6. Vadilal Enterprises Ltd.

The company was incorporated in 1985 and mainly focuses on the distribution of ice creams, frozen desserts, and processed foods across India. Taking care that millions of consumers get to choose from, the group’s wide range of over 150 ice cream flavors are more than 1,500 distributors and 50,000 retailers networked with Vadilal Enterprises. It also plays a significant role in Vadilal’s export operations by covering markets in more than 45 countries. The company’s headquarters is located in Ahmedabad.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
144.77%	431.23%	479.21%

Note: Vadilal Enterprises manufactures ice-creams, while Vadilal Industries owns the brand rights and sells the product.

7. Milkfood Ltd.

Milkfoods Ltd. was incorporated in 1973. It is a vertically integrated business with processes ranging from milk procurement to finished products. The company processes more than 1 million liters of milk daily. Its product range consists of milk powders, ghee, butter, and cheese. Through a large distribution network, the company has been selling its products across the nation and exporting them to foreign markets, too. The company’s headquarters is located in Patiala.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-29.15%	13.53%	-27.88%

8. Umang Dairies Ltd.

Umang Dairies Ltd. was established in 1994 and is part of the JK Organisation. It operates a highly robust farm-to-table business model focusing on milk processing and producing value-added dairy products. The company processes more than 6 lakh liters of milk per day. Its product line includes milk powder, ghee, etc. The company has 800 distributors and more than 1,50,000 retailers across India. The company’s head office is located in New Delhi.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
24.88%	10.00%	85.31%

Read Also: List of Best Agricultural Stocks in India 2025

Performance of Dairy Stocks

Company	1-Year Return
Hatsun Agro Product Ltd.	13.40%
Dodla Dairy Ltd.	65.35%
Heritage Foods Ltd.	115.10%
Vadilal Industries Ltd.	42.81%
Parag Milk Foods Ltd.	14.25%
Vadilal Enterprises Ltd.	48.97%
Milkfood Ltd.	16.38%
Umang Dairies Ltd.	49.19%

Key Performance Indicators 

Company	Net Profit Margin (%)	ROE (%)	Debt to Equity (x)	TTM P/E (x)	P/B (x)
Hatsun Agro Product Ltd.	3.34	17.00	1.44	91.79	18.55
Dodla Dairy Ltd.	5.33	14.64	0.03	40.80	7.13
Heritage Foods Ltd.	2.98	13.18	0.11	34.12	6.26
Vadilal Industries Ltd.	12.96	26.91	0.22	18.87	5.31
Parag Milk Foods Ltd.	2.88	9.93	0.67	24.55	2.60
Vadilal Enterprises Ltd.	0.75	41.58	1.44	19.41	27.94
Milkfood Ltd.	1.62	4.09	0.66	46.11	2.40
Umang Dairies Ltd.	0.46	2.96	0.94	65.32	5.55

Benefits of Investing in the Dairy Industry

Investing in dairy stocks can have several advantages, some of which are listed below:

• Steady Demand: Dairy products have a steady demand, which is not influenced even during economic downturns.
• Growth Potential: As urbanization increases, the dairy sector is expected to grow significantly, particularly due to value-added products.
• Government Support: Initiatives such as the National Dairy Plan are positive for attracting investment in the sector.
• Diversification: Investors can buy dairy stocks to reduce the portfolio risk.

Factors to consider before investing in the Dairy industry

There are various factors one should take into account before investing in dairy stocks:

• Market Demand: Assess the demand for dairy products, especially processed and value-added products like cheese and yogurt.
• Supply Chain Efficiency: Evaluate the company’s distribution network and storage facilities.
• Sustainability Practices: Investors need to identify companies with sustainable practices.

The Future of Dairy Industry

The future of the Indian dairy industry looks bright due to the adoption of the latest technologies to optimize supply chains and storage facilities. These improvements are helping companies reach new markets with better-quality products. One has to look at the growth trends, such as the rise in the demand for value-added products like organic and fortified dairy. 

However, certain factors, such as fluctuating milk prices, sustainability issues, and regulatory aspects, can affect the performance of dairy stocks. The Indian dairy sector is set for expansion, and investors must consider it for long-term investments.

Read Also: List of Best Chemical Stocks in India 2025

Conclusion

In a nutshell, investing in dairy stocks in India can be profitable in the long run as the industry is expected to grow substantially due to a rise in domestic consumption and government support. Major players in the industry are in a good position to capitalize on the growing demand for value-added dairy products. New technologies are being used to improve storage facilities and supply chains to help companies reach new consumers. However, an individual must consult a financial advisor before investing.

Frequently Asked Questions (FAQs)