$MILK - Plant-based Dairy, One to Watch Plant Veda is my top pick for the plant-based sector. They’re a company that produces award-winning plant-based dairy alternatives. They have 3 main product lines: Lassi, milk (mylk), and coffee creamer. Some highlights about the company include
- New Delta facility (will support $10M+ in sales per year with room to grow)
- Revenue from both retail and eCommerce offerings
- New products such as yogurts and dips coming soon (will help them increase sales and eCommerce traffic)
- Plant-based dairy is estimated to see 39% YoY growth, a $21.52B market by 2024
Things seem to be going as planned for the company. They already have a product in a rapidly growing sector with a few facility that will help them support expansion beyond the BC borders. IMO, what $MILK needs are to break into the US and Ontario market with their products. With a recent CFIA approval and an FDA registration, it seems like the announcement for distribution into the US will come very soon.
The stock has also been performing quite well, IPOd at $1.50 back in June and is now sitting comfortably in the $1.80 range. This gives them a market cap of $35M.
- Assuming a revenue of $10M (based on new facility estimates) that gives them a valuation of 3.5x revenue to market cap ratio
- Compare that to $BYND that did $400M last year but let’s say they’ll do around $500M this year based on quarterly growth. They have a revenue to market cap ratio of just around 15.38x. If $MILK had a similar (future) revenue to price ratio, they’d be valued at approximately $153M or roughly $7.9 per share.
When looking at $MILK, keep in mind the valuations of competitors/peers in the plant-based sector. $MILK definitely looks like a great buy rn considering the valuation and future developments they’re bringing to the table.
https://www.plantveda.com/