Active TopicsActive Topics  Display List of Forum MembersMemberlist  CalendarCalendar  Search The ForumSearch  HelpHelp
  RegisterRegister  LoginLogin

Emerging companies - Mid caps that can become large cap
 The Equity Desk Forum :Investment Ideas - Creating winning portfolios! :Emerging companies - Mid caps that can become large cap
Message Icon Topic: Dabur ~ A classic FMCG play! Post Reply Post New Topic
<< Prev Page  of 10 Next >>
Author Message
vaib
Senior Member
Senior Member


Joined: 23/Oct/2009
Online Status: Offline
Posts: 308
Quote vaib Replybullet Posted: 12/Dec/2010 at 7:17pm
If I remember correct they are overall losing money in out of India business. Split and bonus means nothing other than being two technical terms, overall wealth would remain same even if no split or bonus. Nevertheless fine bet.
IP IP Logged
rakeshmehta48
Senior Member
Senior Member


Joined: 01/Dec/2007
Location: United Arab Emirates
Online Status: Offline
Posts: 544
Quote rakeshmehta48 Replybullet Posted: 12/Dec/2010 at 7:51pm
Originally posted by vaib

If I remember correct they are overall losing money in out of India business. Split and bonus means nothing other than being two technical terms, overall wealth would remain same even if no split or bonus. Nevertheless fine bet.



FYI they are not losing money out of India business. On the contrary, major chunk of sales and profit is from Indian operations only.

Their international biz is still at an infant stage.

Split and bonuses does have own benefits in long run. I need not go in details. You may refer appropriate thread on split and bonuses.

Fund Management is Most Important
IP IP Logged
rakeshmehta48
Senior Member
Senior Member


Joined: 01/Dec/2007
Location: United Arab Emirates
Online Status: Offline
Posts: 544
Quote rakeshmehta48 Replybullet Posted: 12/Dec/2010 at 7:55pm
Originally posted by nav_1996



This has all the ingredients of a sureshot winner for this decade. (This old wine is just getting better with every passing year).




I fully agree with you
Fund Management is Most Important
IP IP Logged
rakeshmehta48
Senior Member
Senior Member


Joined: 01/Dec/2007
Location: United Arab Emirates
Online Status: Offline
Posts: 544
Quote rakeshmehta48 Replybullet Posted: 12/Dec/2010 at 8:11pm
Dabur's international business contributes 18% only to the consolidated sales.
Rest comes from domestic operations.
Fund Management is Most Important
IP IP Logged
bitu1978
Senior Member
Senior Member
Avatar

Joined: 31/Jul/2010
Location: India
Online Status: Offline
Posts: 524
Quote bitu1978 Replybullet Posted: 12/Dec/2010 at 8:27pm
Originally posted by pkumar

For ayurvedic medicines, I think baidyanath and zandu products are far better in quality as compared to DaburAlso Tropicana from pepsico tastes better than Real juiceStill Dabur is a great company to own due to its strong market in India


I have never Tried Tropicana but other than real juice all the Juices I have tried don't seem Natural. You Can try Real Litchi it tastes wonderful. Will try Tropicana for comparison.
IP IP Logged
TonyMathew
Groupie
Groupie
Avatar

Joined: 22/Dec/2009
Location: India
Online Status: Offline
Posts: 51
Quote TonyMathew Replybullet Posted: 12/Dec/2010 at 5:12am
Any idea where the funding for these acquistions are coming from?  They should not leverage their balance sheet and make it debt ridden like some companies who went on an overseas buying spree only to over leverage themselves and get into heavy debt. I think some examples are Suzlon, Wockhart,

Edited by TonyMathew - 12/Dec/2010 at 5:13am
Tony Mathew
IP IP Logged
rakeshmehta48
Senior Member
Senior Member


Joined: 01/Dec/2007
Location: United Arab Emirates
Online Status: Offline
Posts: 544
Quote rakeshmehta48 Replybullet Posted: 12/Dec/2010 at 7:25am
Originally posted by TonyMathew

Any idea where the funding for these acquistions are coming from?  They should not leverage their balance sheet and make it debt ridden like some companies who went on an overseas buying spree only to over leverage themselves and get into heavy debt. I think some examples are Suzlon, Wockhart,



On debt front, company is very conservative and careful and not at all over leveraged. Debt equity ratio is favourable.
Company acquired Balsara during 2006 and Fem during 2008 and as per balance sheet, debt reduced to 179 crs in FY10 from 227 crs in FY09. Company is generating lot of cash to take care of aquisitions.
As on date debt should be in the range of 300-350 crs after international aquisitions and such a debt can easily be taken care of by a company of Dabur's size.

Fund Management is Most Important
IP IP Logged
rakeshmehta48
Senior Member
Senior Member


Joined: 01/Dec/2007
Location: United Arab Emirates
Online Status: Offline
Posts: 544
Quote rakeshmehta48 Replybullet Posted: 14/Dec/2010 at 8:11am
Dabur's D/E was never above 0.3 in the past.
FY10 its 0.2
Going forward this may come down to 0.1, if no further aqusitions, but I feel company may again go for aqusition in international market.
Fund Management is Most Important
IP IP Logged
<< Prev Page  of 10 Next >>
Post Reply Post New Topic
Printable version Printable version

Forum Jump
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum



This page was generated in 0.014 seconds.
Bookmark this Page