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basant
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Joined: 01/Jan/2006
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Posts: 18403
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   Topic: Dabur ~ A classic FMCG play!
Posted: 17/Dec/2007 at 6:56am |
Originally posted by rakeshmehta48
Smartcat Ji,
Re Dabur I have different views.
Ex split, bonuses and demerger, Dabur is already 40+ bagger for me, Plus regular dividends.
I beleive that there are still lot of juices in coming years.
Present Management is pragmatic and Investor's friendly. Promoters holding is 73.67% which inspires confidence.Company is growing at reasonably good pace for the past few years. For yr ending March 2007:
Sales growth is 30%
Earning growth is 33%
RONW : 63%
ROCE : 60%
NP Margin : 14.4%
Short term liquidity : Current Ratio 1.05
Long Term Liquidity : Gearing Ratio 18.46%
Debt Equity 0.04 !!!
For Q2 Sept 2007 Sales are 630 Cr(Up 12%) NP 96.6 Cr(Up 23%)
Market cap today is approx 10000 Crs.
The best part is that they are entering retail sector. They have created retail brand identity "new-u" through 100% subsudiary "H&B Stores Limited". They are targetting 160 retail stores in 3 years and sale target of 1000 cr for this div. by 2010
I am very bullish on this counter.
Please let me have comments from other members.
Rakesh Mehta |
Dabur does look like a very stable and compelling play with some excellent brands and products. Let us discuss this company in detail here.
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xbox
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Joined: 10/Sep/2006
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Posts: 2001
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Posted: 17/Dec/2007 at 7:06am |
Originally posted by rakeshmehta48
Ex split, bonuses and demerger, Dabur is already 40+ bagger for me, Plus regular dividends.
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You margin of safety is too large. From here if it doubles you will make 80 bagger but new guy will only make 2 bagger. Although I am no expert of FMCG in general & Dabur in particular. I tried to put certain things in perspective.
In my little experience, there are better sectors than FMCG. One can always look at financial, real-estate, infra sectors for higher growth than evergreen sectors like FMCG, Pharma etc. Multibagger in evergreen sector is ultimate aim but it make sense to put fresh money where extraa growth is ....
Edited by xbox - 17/Dec/2007 at 7:14am
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Don't bet on pig after all bull & bear in circle.
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smartcat
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Joined: 29/Mar/2007
Location: India
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Posts: 4243
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Posted: 18/Dec/2007 at 11:11am |
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I had Dabur in my radar sometime back but then I bought Dabur's toothpaste. Brushing teeth with Dabur toothpaste is about as much fun as brushing teeth with Chilli Powder.
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rakeshmehta48
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Joined: 01/Dec/2007
Location: United Arab Emirates
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Posts: 544
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Posted: 19/Dec/2007 at 12:48pm |
Nice one Smartcat Ji
I have never tried Dabur toothpaste, but hope that mirchy was not very theekhi.
For me Dabur share is very sweet
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Fund Management is Most Important
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johnnybravo
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Joined: 17/Jan/2007
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Posted: 19/Dec/2007 at 5:24pm |
what's the shape of your radar? 
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rakeshmehta48
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Joined: 01/Dec/2007
Location: United Arab Emirates
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Posts: 544
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Posted: 19/Dec/2007 at 8:07pm |
Dabur's Earning growth is faster than Sales growth.
For the last three years figs are:
03/2007 03/2006 03/2005
SALES GROWTH
Sales (Crs) 1745 1345 1231
Var % 29.70 9.29 13.31
EARNING GROWTH
PAT (Crs) 252 189 148
Var % 33 28 46
Sales growth during 2005 & 2006 looks lower, perhaps due to demerger of Dabur Pharma during 2004.
Seems co is able to extract better margins yr after yr.
For qtr ending Sept 2007
Sales : 630 crs (UP 11.68%)
NP : 96.6 crs (Up 22.74%)
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Fund Management is Most Important
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rakeshmehta48
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Joined: 01/Dec/2007
Location: United Arab Emirates
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Posts: 544
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Posted: 07/Apr/2008 at 7:47pm |
Dabur India board will meet on 30th April to approve financial result and consider dividend for the year ending March 2008.
NP expected to grow only 25-26% (From 252 crs to approx 315-320 crs)
EPS from 2.92 to 3.65-3.70 range
Edited by rakeshmehta48 - 07/Apr/2008 at 7:48pm
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Fund Management is Most Important
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rakeshmehta48
Senior Member
Joined: 01/Dec/2007
Location: United Arab Emirates
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Posts: 544
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Posted: 22/Nov/2008 at 11:34am |
In an all cash deal Dabur India is acquiring 72.15% of Fem Care Pharma Ltd. from the promotors, for Rs 203.7 crores.
Acquisition price per share is Rs 800, which translate into an equity valuation of Rs 282.4 crores and enterprise value of approx Rs 300 crores of Fem Care Pharma Ltd.
Now Dabur India will make an open offer for an additional 20% shares in the company as per takeover regulations.
This seems very positive development for Dabur India.
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Fund Management is Most Important
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