Dabur ~ A classic FMCG play!
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Emerging companies - Mid caps that can become large cap
Forum Discription: These are companies operating in growing markets having have certain niches or specific attributes like new sector plays. These are emerging multibaggers with high risks and high rewards.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1462
Printed Date: 07/May/2025 at 1:27am
Topic: Dabur ~ A classic FMCG play!
Posted By: basant
Subject: Dabur ~ A classic FMCG play!
Date Posted: 17/Dec/2007 at 6:56am
Dabur does look like a very stable and compelling play with some excellent brands and products. Let us discuss this company in detail here. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Replies:
Posted By: xbox
Date Posted: 17/Dec/2007 at 7:06am
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 ....
------------- Don't bet on pig after all bull & bear in circle. |
Posted By: smartcat
Date Posted: 18/Dec/2007 at 11:11am
| 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. |
Posted By: rakeshmehta48
Date Posted: 19/Dec/2007 at 12:48pm
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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 ------------- Fund Management is Most Important |
Posted By: johnnybravo
Date Posted: 19/Dec/2007 at 5:24pm
what's the shape of your radar? 
|
Posted By: rakeshmehta48
Date Posted: 19/Dec/2007 at 8:07pm
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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%) ------------- Fund Management is Most Important |
Posted By: rakeshmehta48
Date Posted: 07/Apr/2008 at 7:47pm
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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 ------------- Fund Management is Most Important |
Posted By: rakeshmehta48
Date Posted: 22/Nov/2008 at 11:34am
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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. ------------- Fund Management is Most Important |
Posted By: rakeshmehta48
Date Posted: 22/Nov/2008 at 11:42am
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By the way Dabur's international division is doing pretty well. ------------- Fund Management is Most Important |
Posted By: rakeshmehta48
Date Posted: 28/Jan/2009 at 2:31pm
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Dabur India has come out with good set of numbers for Dec Quarter , inspite of their Retail Business being still in red.
Consolidated figures for the Qtr are:
Sales grown by 19% to 786 crs.
N.P. up by 16% to 107 crs.
Growth is seen in all the divisions viz. Hair care biz, Baby & Skin Care category, Consumer health div, International Biz. except for Retail biz. which continues to be in the red.
As per CEO, even in the current economic scenario demand for company's product continue to be strong and company has not seen any significant impact on consumer spending.
Company has declared 75% interim dividend (Rs0.75 per share of FV 1.00)
Dabur seems to be well poised to reap substantisl benefits once economy turns around and consumer confidence improves. ------------- Fund Management is Most Important |
Posted By: rakeshmehta48
Date Posted: 17/May/2009 at 6:14pm
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During past one year or so, because of general economic/consumer spending slowdown, Dabur India too went slow on some expansion plans, still the results for 2009 are good. Topline has grown by 16% to 2418 crs, while net profits have grown by 18% to 374 crs. Dividend 175% (Re 1.75 per ticket of FV 1)
Company is all set to grow at much rapid pace during coming years.
They declared bonuses during 2005 and again in 2006. I have a hunch feeling that they may again declare bonus in a years time.
Looks very good for long term investment.
Surprised that most of the members are not willing to discuss or comment on this script.
A WORD OF CAUTION:
THIS IS AN EXPENSIVE STOCK BY MANY YARD STICKS, SO PLEASE DO YOUR OWN HOMEWORK BEFORE MAKING ANY INVESTMENT DECISION.
I AM INVESTED IN THIS STOCK. ------------- Fund Management is Most Important |
Posted By: praveen
Date Posted: 27/May/2009 at 4:56pm
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Post the FEM Care acquisition Dabur has become the largest bleach player in country. ------------- The quest for knowledge is a never ending Journey |
Posted By: rakeshmehta48
Date Posted: 22/Sep/2009 at 8:55pm
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Dabur India is doing wondefully well and may grow at 25% plus in coming years. ------------- Fund Management is Most Important |
Posted By: bub100
Date Posted: 09/Oct/2009 at 8:42pm
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http://www.business-standard.com/india/news/no-acquisitions-this-fiscal-dabur/75455/on ------------- gs |
Posted By: rakeshmehta48
Date Posted: 26/Oct/2009 at 11:42pm
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Dabur has again come up with good results for Qtr ending 30 Sept 2009. Growth momentum continues and this qtr has shown fastest growth in last 18 qtrs.
Key points as per "Investor Communication" are as follows:
Q2FY10 vs Q2FY09
TOPLINE increased by 22.4% to 855 crs.
EBITDA margin expanded by 183 bps to 21.8%
PAT increased by 29.1% to 139 crs.
Net working capital at 25 days as against 36 days.
For the past few years, company's bottom line is growing faster than top line, because of improving gross margins and operating leverage.
Seems company has a long way to go.
Market cap is approx 13K crs.(Almost doubling since bottom of last year)
STOCK LOOKS EXPENSIVE AT CMP OF 150+ BUT STILL ATTRACTIVE FOR ME.
------------- Fund Management is Most Important |
Posted By: rakeshmehta48
Date Posted: 31/Jan/2010 at 1:08pm
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Dabur has reported okay like results and growth for the Quarter ending Dec 2009.
Consolidated Q3 Revenue up 18.6% to 933 crs agst 786 crs a year earlier.
Net Profit for the Qtr is up 28.3% at 138 crs against 107 crs in the same quarter of the previous fiscal.
EBIDTA margins reported an improvement of 179 basis point to 19.7% for the third quarter of 2009-10 ------------- Fund Management is Most Important |
Posted By: master
Date Posted: 31/Jan/2010 at 8:18pm
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I like the way this company can expand its ebitda margin; can be a steady compounder.
------------- Someone’s sitting in shade today because someone planted a tree long time ago. |
Posted By: rakeshmehta48
Date Posted: 24/Apr/2010 at 8:46am
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I was pleasantly amazed to learn recently that Dabur has completed 125 years of operations. I had an idea that this is a very old company and it was incorporated before we got independence, but 125 years was beyond my imagination.
Dabur was established by Dr.S.K.Burman at Kolkata (Calcutta)during the year 1884. Later, company shifted its base to Delhi in 1972.
Any body having any idea of any other Indian company which is 100+ years old. May be from Tata Group. ------------- Fund Management is Most Important |
Posted By: rakeshmehta48
Date Posted: 24/Apr/2010 at 9:15am
Dabur's EBITDA margins upto 2004 used to be in the range of 12-13%
Then from 2005 started improving.
During the last three years Ebitda margins are 18+%
Likewise PAT margins improved from 6-8% to 13-14%, during the same period.
------------- Fund Management is Most Important |
Posted By: nav_1996
Date Posted: 24/Apr/2010 at 9:47am
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Tata Steel and Indian Hotels are about 100 years old.
Dabur is a classical FMCG play. It has most diversified portfolio after HUL and is based on Aurveda/Wellness platform. I would consider best FMCG play if you want to hold it for really long period(decades). |
Posted By: rakeshmehta48
Date Posted: 24/Apr/2010 at 10:02am
Thanks Nav for infm on Tata Steel & Indian Hotels.
Re Dabur, I fully agree with you. I am holding this stock for 15+ years
Simple return during this period is 60 times + dividends.
For me it's 120 times + dividens, because of one in/out during 2008/09
------------- Fund Management is Most Important |
Posted By: nav_1996
Date Posted: 28/Apr/2010 at 7:38pm
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Great numbers from Dabur. PAT up 30%, volumes up 15%.
Sometimes I wonder why we need to hold volatile/cyclics when companies like Dabur have been growing 30% since last 5 years. This growth momentum will continue for a couple of more years. |
Posted By: basant
Date Posted: 28/Apr/2010 at 9:04pm
Excellent point!
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Ajith
Date Posted: 28/Apr/2010 at 10:22pm
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Gosh!I looked at the quarterly numbers after seeing this thread right now.Absolutely terrific.Dabur is set to become a huge company.
------------- Ajith |
Posted By: basant
Date Posted: 28/Apr/2010 at 10:59pm
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There are several companies not just this one that are growing at 20pc to 30pc but investors love the fluctuations of lesser growth companiess. Sometimes things that are too easy to do does not seem worth doing and therein lies the tragedy. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: ferrari
Date Posted: 28/Apr/2010 at 11:21pm
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EID Parry is 221 yr old company
you can refer to the website www.eidparry.com |
Posted By: adityancs
Date Posted: 13/Jun/2010 at 2:46pm
| EID Parry can not be compared with DABUR. EID Parry has been maintaing their traditional products with set customers of South but Dabur is during fantastic market strategy with new products also |
Posted By: ferrari
Date Posted: 27/Aug/2010 at 9:29pm
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We can not compare Dabur with EID. the reason i mentioned EID was to reply to cos in existence of over 100yrs.
|
Posted By: rakeshmehta48
Date Posted: 12/Dec/2010 at 6:11pm
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Dabur's growth story continues unabated.
The management has become bit aggresive during past few years, as compared to 90's decade. During 2008, they took over FEM CARE. Then during this year they acquired HOBI KOZMETI group of Turkey and then NAMASTE group of US. Oflate focus has increased towards International markets. Future seems very bright for this company. ------------- Fund Management is Most Important |
Posted By: rakeshmehta48
Date Posted: 12/Dec/2010 at 6:25pm
Dabur oblidged during this year also by giving bonus (Cutting the Pizza slice) in the ratio of 1:1 Imagine, anyone holding 1000 shares at the begning of decade is today sitting on 60000 shares (Yes sixty thousand) & the icing on cake is shares of demerged entity "Dabur Pharma" and ofcourse regular lucrative dividends. Management is very investor friendly and they may continue to reward the share holders in foreseeable future. ------------- Fund Management is Most Important |
Posted By: nav_1996
Date Posted: 12/Dec/2010 at 6:52pm
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Most diversified FMCG after HUL with focus on wellness built on Aurvedic platform. Add to this Aurvedic medicine porfolio which is being redicovered, aggressive and investor friendly management.
This has all the ingredients of a sureshot winner for this decade. (This old wine is just getting better with every passing year). |
Posted By: pkumar
Date Posted: 12/Dec/2010 at 7:07pm
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For ayurvedic medicines, I think baidyanath and zandu products are far better in quality as compared to Dabur Also Tropicana from pepsico tastes better than Real juice Still Dabur is a great company to own due to its strong market in India ------------- "The news is always a mix of positive and negative. When markets decline, people point to the negative news; and when it increases, the positive news is emphasized." - Bob Farrell |
Posted By: vaib
Date 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. |
Posted By: rakeshmehta48
Date Posted: 12/Dec/2010 at 7:51pm
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 |
Posted By: rakeshmehta48
Date Posted: 12/Dec/2010 at 7:55pm
I fully agree with you ------------- Fund Management is Most Important |
Posted By: rakeshmehta48
Date Posted: 12/Dec/2010 at 8:11pm
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Dabur's international business contributes 18% only to the consolidated sales.
Rest comes from domestic operations. ------------- Fund Management is Most Important |
Posted By: bitu1978
Date Posted: 12/Dec/2010 at 8:27pm
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. |
Posted By: TonyMathew
Date Posted: 12/Dec/2010 at 5:12am
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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, ------------- Tony Mathew |
Posted By: rakeshmehta48
Date Posted: 12/Dec/2010 at 7:25am
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 |
Posted By: rakeshmehta48
Date Posted: 14/Dec/2010 at 8:11am
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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 |
Posted By: nav_1996
Date Posted: 27/Jan/2011 at 3:32pm
| This has come down to a buy level again for long term investors. They have managed input costs better than all others and results should be ok. |
Posted By: manish_okhade
Date Posted: 27/Jan/2011 at 4:15pm
Sometimes i wonder why companies like Dabur quotes at 35-40 PE while its a slow grower with CAGR of 11% for past several year:
CAGR - 10.89%
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Posted By: nav_1996
Date Posted: 27/Jan/2011 at 7:51pm
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Not sure. Read EPS CAGR of 20% somewhere. Last 3 years EPS is as follows on consolidated level. 5.44 4.22 3.61
Current PE is 31. |
Posted By: navtej91
Date Posted: 27/Jan/2011 at 8:03pm
| PE is slightly over 19.5 |
Posted By: nav_1996
Date Posted: 27/Jan/2011 at 9:21pm
| I think there was a split and we need to adjust PE for that. |
Posted By: navtej91
Date Posted: 27/Jan/2011 at 10:22pm
| http://money.rediff.com/companies/dabur-india-ltd./12540103 |
Posted By: manish_okhade
Date Posted: 27/Jan/2011 at 8:16am
Rediff quotes PE as per very last year's EPS. As per rediff below is the EPS
It translates to 10.9% CAGR.
|
Posted By: nav_1996
Date Posted: 27/Jan/2011 at 10:19am
| Something is wrong with this data. Their 10 years EPS growth is about 18% CAGR. 10% may be for their worst year. |
Posted By: rakeshmehta48
Date Posted: 28/Jan/2011 at 10:09am
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I think to compare CAGR on EPS basis may not be the right criteria because of equity diluation.
Incase of Dabur, there are many bonuses during last decade. Thus EPS growth may look slow. It may be perhaps better if sales/Ebitda/Pat growth is considered alongwith ROCE/RONW ------------- Fund Management is Most Important |
Posted By: manish_okhade
Date Posted: 28/Jan/2011 at 10:13am
PAT growth CAGR is also not enthusiastic its 23%.
Yes, its agreed that Dabur is a safe bet but its safety should not lead to premimum valuation of PE of 37-40 with 23% CAGR alone.
It's definitly overvalued carzily and i guess safe entry point should be PE of 25.
|
Posted By: rakeshmehta48
Date Posted: 28/Jan/2011 at 10:26am
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During past 5 financial years (2006 to 2010) actual data is as follows:
Sales : 1757/2080/2396/2834/3417 crs Ebitda: 300/376/443/517/669 crs PAT : 214/282/333/391/501 crs During this period: Ebitda margins increased from 17% to 20% approx Pat margins improved from 12% to 15% approx ROCE improved from 39% to 46% approx RONW improved from 46% to 54% approx ------------- Fund Management is Most Important |
Posted By: rakeshmehta48
Date Posted: 28/Jan/2011 at 10:32am
In the past, I have always mantained that it's a expensive stock, but this is how market evaluate it. And I have always enjoyed market's evaluation of Dabur. ------------- Fund Management is Most Important |
Posted By: nav_1996
Date Posted: 28/Jan/2011 at 11:03am
| FMCG in India has always been expensive. HUL with 10% growth is valued at PE of 25. Dabur has consistently grown at an avg of about 20% for a decade now. It is present in low penetration areas compared to other biggies like HUL and Godrej consumer. |
Posted By: navtej91
Date Posted: 29/Jan/2011 at 9:19am
| any analysis an sales growth for next 3 yrs keeping in mind there new focus area is africa ?? |
Posted By: nav_1996
Date Posted: 29/Jan/2011 at 10:57am
| For next 3 years it may be about 20% +. It is likely to be usual boring 15% for much longer horizon. |
Posted By: commnman
Date Posted: 31/Jan/2011 at 1:25pm
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Q3 results out...
Total Income up 17% to 1086.88 Cr from 930.17 Cr. EBIDTA up 19.4% to 216.45 Cr from 181.31 Cr. Net Profit up 12.1% to 154.45 Cr from 137.77 Cr. EBIDTA margin is 19.9% V/s 19.5% (DQ-09) and 21.66% (SQ-10) NET Pr margin is 14.21% V/s 14.81% (DQ-09) and 16.32% (SQ-10) Total raw material costs as a %ge to Income is 48.13% V/s 45.2% (DQ-09) and 46.65% (SQ-10) Advertisements costs, Employee costs, and Other expeses all more or less stable. In fact, Advertisement expenses down 210 bps to 12.41% against 14.51% to revenues. Y-t-D 9-month 2010 to 9-month 2009: Total Income up 17.2% to 2994.84 Cr from 2555.75 Cr (FY10 Full year 3415.72 Cr) EBIDTA up 19.5% to 574.72 Cr from 480.81 Cr (FY10 Full year 654.37 Cr) Net up 14.6% to 421.59 Cr from 367.77 Cr (FY10 Full year 503.23 Cr) Reported Nine month EPS is 2.41 V/s 2.12 (FY10 Full year 2.89) SEGMENTS: Consumer Care (Contributes most to the revenues) Income up 16.3% to 866.78 Cr from 745.48 Cr. PBT up 13% to 228.88 Cr from 202.53 Cr. Margins 26.41% V/s 27.17% (DQ-09) and 28.41% (SQ-09) FOODS Business Income up 29.8% to 112.38 Cr from 86.61 Cr. PBT up 30.2% to 19.55 Cr from 15 Cr. Margins 17.4% V/s 17.33% (DQ-09) and 21.88% (SQ-09) Consumer health Income up 13.8% to 81.28 Cr from 71.41 Cr. PBT up 4.2% to 18.62 Cr from 17.87 Cr. Margins 22.91% V/s 25% (DQ-09) and 20.7% (SQ-09) Results overall looks modest, but considering what other FMCGs doing, much better. ------------- main toh aam aadmi hun... jo sunta hoon wohi sach maanta hoon |
Posted By: getmanoj
Date Posted: 01/Feb/2011 at 10:37pm
| http://timesofindia.indiatimes.com/business/india-business/Dabur-shuts-Egypt-plant-Emami-cagey-over-unrest/articleshow/7405262.cms - Dabur shuts Egypt plant |
Posted By: surjeetk21
Date Posted: 10/Feb/2011 at 12:19pm
| Mr Basant whats your take on Dabur at these levels of RS 90.Is this company worth investing for a period of 5 year and expect a return of 20% CAGR. |
Posted By: basant
Date Posted: 10/Feb/2011 at 12:59pm
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Good company but better plays around. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: manish_okhade
Date Posted: 10/Feb/2011 at 1:11pm
Arre sir, aap ka yahi standard answer rahata hain. Kabhi ye bhi to bataiye ki what are those better plays around
 ? |
Posted By: basant
Date Posted: 10/Feb/2011 at 1:37pm
 ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Gurdial
Date Posted: 10/Feb/2011 at 2:20pm
Me thinks-TED Super 5 ??------------- To be a successful business owner and investor, you have to be emotionally neutral to winning and losing. Winning and losing are just part of the game. |
Posted By: values
Date Posted: 10/Feb/2011 at 2:47pm
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@Basantji with the knowledge and expertise here on TED, why cant we identify those 3-4 stocks that can make it to anyones portfolio for a period of 3-4 yrs which can both be value + growth..we discuss so many stock results here and opinions may be we can have a TED 4 or 5 list that can be a great play... ------------- Knowledge is power! |
Posted By: manish_okhade
Date Posted: 10/Feb/2011 at 2:55pm
Value lies in the eye of beholder.......
|
Posted By: rakeshmehta48
Date Posted: 10/Feb/2011 at 3:05pm
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If some one has a game plan ready for markrt crash/deep correction, then Dabur is a safe entry point now.
Means, Fund Management becomes very important. One can keep adding on further correction, as per game plan. I see Dabur emerging out much stronger in the next decade. ------------- Fund Management is Most Important |
Posted By: surjeetk21
Date Posted: 11/Feb/2011 at 9:09am
| i also feel that we must have TED super 5. |
Posted By: commnman
Date Posted: 27/Apr/2011 at 3:31pm
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Q4 and FY-2011 numbers out...
Total Income up 30% to 1115.62 Cr from 858.25 Cr. EBIDTA up 24.3% to 212.99 Cr from 171.42 Cr. Net Profit up 8.7% to 147.01 Cr from 135.28 Cr. EBIDTA margin is 19.09% V/s 19.97% (MQ-10) and 19.91% (DQ-10) NET Pr margin is 13.18% V/s 15.76% (MQ-10) and 14.21% (DQ-10) Cost of goods sold as a %ge to Income is 43.84% V/s 44.78% (MQ-10) and 48.13% (DQ-10) That means raw materials well under check. Tax Rate up to 21.97% from 14.84% There is a slip between EBIDTA and Net profit from 1. Interest Charges that up 5 times to 15.91 Cr from 2.47 Cr. 2. Tax incidence thats up 76% to 41.4 Cr from 23.58 Cr. Good increase in other income of 16.28 Cr from 4.79 Cr didn't help too much. FY-2011 v/s FY-2010: Total Income up 20.3% to 4110.45 Cr from 3415.72 Cr. EBIDTA up 20.4% to 787.7 Cr from 654.37 Cr. Net Profit up 13% to 568.58 Cr from 503.23 Cr. Net profit affected by Interest costs thats up 50% to 30.34 cr from 20.21 Cr AND Full Year Tax Rate 19.63% v/s 16.72 Reported full year EPS is 3.25 against 2.89 previous year. A look at Assets & Liabilities reveals Loan funds thats up to 1051 Cr from 179 Cr. That explains steep increase in Interest charges. - ------------- main toh aam aadmi hun... jo sunta hoon wohi sach maanta hoon |
Posted By: shontou
Date Posted: 12/Sep/2011 at 11:40am
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Dabur India::Takeaways Motilal Oswal Annual Global Investor Conferences
Dabur India Key Takeaways Volume growth under pressure; luxury and premium products doing well Dabur India's volume growth has declined in the past few quarters, as consumers are yet to adjust fully to higher prices and high food inflation. Premium and luxury products are witnessing continued buoyancy in demand, as necessities do not add up to a very significant part of the target audience's income. Consequently, categories like processed foods, juices, air care and deodorants are maintaining high growth rates. Demand in the MENA region is slowly recovering; however, Levant countries will take some time to recover. Select inputs turning soft; margin recovery likely in 2HFY12 Input cost pressure is intense in materials like LLP, packaging, honey, spices, etc. Oral care margins have been impacted, as Colgate has been very selective in price increases, making price increases a difficult proposition for Dabur. Categories like glucose and hajmola have also seen margin pressure. Dabur has strong pricing power in amla and juices, which have seen price hikes in the recent past. Softening input cost could enable margin improvement from 2HFY12. Namaste integration on track; high visibility of growth Dabur is very positive on the growth opportunity for Namaste in its niche segment of ethnic products for people of African origin. It is starting a new facility in Nigeria by 4Q and another facility in South Africa in FY13 to have pan Africa presence. The proportion of non-USA sales has increased from 21% to 30% in the last five years; Dabur plans to significantly increase the proportion of non-USA sales to 60- 70% in the coming 5-7 years. MENA region pressures exist; recovery likely from 3Q MENA region has seen poor sales growth and margin pressure due to unrest. Restrictions on pricing in Bahrain, Oman, etc continue to impact performance, although these regions contribute just 5% of sales. Libya, Syria and Yemen sales are under pressure and should recover from 3Q. ------------- Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday? |
Posted By: Kautilya
Date Posted: 25/Oct/2011 at 2:15pm
|
First there was news about the Burman family buying a stake in a portugese investment bank and now Gaurav Burman is buying a stake in the http://articles.economictimes.indiatimes.com/2011-10-24/news/30316298_1_vc-burman-team-lotus-mohit-burman - Lotus F1 Team . I am not sure if this is got anything to do with shareholders money, but this is beginning to get a little appaling. I hope this is got nothing to do with shareholders. ------------- My indecision is final. |
Posted By: shontou
Date Posted: 01/Nov/2011 at 4:27pm
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Conference Call
Dabur India Ad spend will rise in Q3 Dabur India held a conference call to discuss the results for the quarter ended September 2011. Mr. Sunil Duggal, CEO of the company addressed the call. Highlights of the call The net sales for Q2 FY12 has grown by 29% to Rs 1270.68 crore. 80% of growth is volume driven. The sales growth was driven by volume, price and acquisition. The domestic sales grew by 11% and international excluding acquisition by 23%. Domestic volume growth decelerated to 5% in 2Q vs. 7 to 8% in Q1. OPM decreased by 240 basis points to 19.3%. The net profit jumped by 8% to Rs 173.86 crore Dabur Lanka Pvt Ltd, wholly owned subsidiary of Dabur International Ltd. incorporated for setting up the new fruit juice facility near Colombo. It plans to invest Rs 70 crore over 2 years. Hair Care grew by 16% in Q2 and by 12% in H1FY12. Hair Oils have grown at a robust 27% (volume growth of 10%) in Q2 and by 21% in H1FY12 driven by price increases and continued volume growth. Both Amla Hair Oil and Vatika recorded market share gains on a Q-o-Q basis in Q2FY12 in spite of price increases and heightened competitive activity. Amla Hair oil market share grew from 19% to 19.8% on Q-o-Q basis. Shampoos showed a decline of 25% in Q2 and 23% in H1FY12. Shampoo has seen 17% growth in tonnage on y-o-y, however, fall in prices across the category has impacted its sales number. Shampoo is operating at margin of ~30% compared to earlier of ~50%. The competitive intensity continues to remain high in the category. Oral Care reported growth of 6% in Q2 and by 9% in H1FY12. Toothpastes grew by 8% in Q2 and by 11% in H1FY12 driven by activations and media campaigns. Growth in toothpastes somewhat impacted by supply side constraints in Red Toothpaste brand during the quarter. Toothpowder grew by 2% in Q2 and by 5% in H1FY12. This segment has seen the least price hikes, while competitive intensity remains high and category margins have declined. Home Care grew by 0.5% in Q2 and by 10% in H1FY12. The growth rate pulled down by decline in Odomos. The biggest brand Odonil witnessed strong growth across formats (blocks, aerosols etc.) and across regions. Odomos primarily declined on account of high base of Q2FY11 and delay in some institutional orders. Sanifresh performed well and recorded gains in market share in Q2 Skin Care was flattish in Q2 and grew by 7% in H1FY12. In Q2 primary sales impacted by the distribution re-alignment. Fem Bleaches reported flattish primary sales in Q2 due to pipeline correction on account of distribution restructuring. However the brand witnessed market share gains and good secondary offtake. Health Supplements grew by 8% in Q2 and by 4% in H1FY12 driven by Dabur Honey and Chyawanprash. Chyawanprash grew strongly on the back of lift in sales during monsoons and consumer activations. Digestives & Baby Care was flat during the quarter and grew by 4% in H1FY12. Hajmola Tablets reported growth in H1FY12, but was flat during Q2 primarily due to supply issues on account of reconfiguration of one of the SKUs. OTC and Ehticals portfolio witnessed temporary disruption on account of re-alignment of distribution. OTC portfolio contracted by 6% in Q2 and grew by 2% in H1FY12. Ethicals portfolio contracted by 12% in Q2 and grew by 0.4% in H1FY12. The growth is expected to revive in H2FY12 under the new distribution system Foods vertical was the star performer, growing by 27% in Q2 and by 30% in H1FY12 with growth across regions and channels. The new fibre added juices under the Activ brand added to the growth momentum. There are more variants in pipeline under both Real and Activ brands. The management expects that with the new factory which will be established in Sri Lanka in FY13, logistics / supply chain costs should decline and improve overall segmental margins meaningfully. International Business continued to be a key growth driver, recording an impressive growth of 23% through the organic route, led by robust performance in GCC, Egypt and Nigeria. Growth in constant currency was 26%. Revenue growth would've been higher, but markets like Yemen, Syria & Libya were impacted by political disturbances. In Q2, Nepal has shown 30% growth, Pakistan was under stress and Bangladesh up by 40% to 45%. Shampoos, Hair Creams and Toothpastes were the key growth drivers in the international markets in the first six months of the fiscal. While the Nigeria business grew by 36%, the GCC and Egypt businesses reported a 27% growth during the first half of the year. Going forward, the company will continue to pursue an aggressive growth strategy through a blend of organic and inorganic initiatives Hobi had sales of Rs 31.4 crore and Namaste of Rs 131 crore in Q2. The EBIDTA margin of Hobi is 10.5% and Namaste is 13.5%. Hobi's margin was impacted due to forex volatility. The company planned to introduce Hobi products in MENA and India in H2FY12. The local manufacturing for Namaste commenced in UAE and it has plans to set up manufacturing facility at Nigeria. The company's net debt is Rs 500 crore. Ad spend though dipped in Q2, the management pointed out that there will be rise in Ad spend in Q3 and Q4 due to new products launches in hair oil, beverages and health supplement. But the rise in Ad spend will not impact margin by managing better raw material cost. The management said that there is a slowdown in offtake from rural India, but expects a recovery over the next few quarters. ------------- Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday? |
Posted By: shontou
Date Posted: 03/Feb/2012 at 11:21am
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Conference Call
Dabur India Expects a gradual improvement in the EBITDA margin led by softening of input prices and price hike on International Business product portfolio Dabur India held a conference call to discuss the results for the quarter and nine months ended December 2011. Mr. Sunil Duggal, CEO of the company addressed the call. Highlights of the call For Q3 FY12, the consolidated net sales has grown by 35% to Rs 1463.08 crore. Excluding acquisitions, the sales grew at a robust 20% driven by combination of volume growth, price increases and translation gains. Volume growth was at 11%. Domestic sales grew by 16% with a price growth of 8%. A host of consumer connect initiatives and higher investment behind brands helped the company drive demand for its products in both urban and rural markets. OPM decreased by 410 basis points to 15.8% due to rise purchased finished goods, ASP cost and other expenditure. The net profit jumped by 12% to Rs 172.82 crore. There was some impact of adverse foreign currency movements which may be recovered if rupee continues to appreciate in Q4 Hair Oils have grown at a robust 22% in Q3 and by 21% in 9M driven by price increases and strong volume growth. Despite price increases, key brands Amla Hair Oil and Vatika performed well and maintained market shares. Dabur Amla hair oil witnessed >20% growth during the quarter driven by 10% volume growth. Dabur Almond Hair Oil, launched in Nov 2011, has received encouraging consumer response and good offtakes. Shampoos staged a revival, growing by 4% in Q3. The biggest variant – Vatika Smooth & Silk grew in mid teens. Competitive intensity continues to remain high in the category. Going ahead, media initiatives and activations have been planned to revive growth. Oral Care reported growth of 12% in Q3 and 10% in 9M. Growth in toothpastes was driven by a combination of media initiatives and Activations. Toothpastes grew by 14% in Q3 and by 11% in 9M. The three brands – Red Toothpaste, Meswak and Babool witnessed gains in market share. Dabur Red Toothpowder grew by 4.5% in Q3 and by 5% in 9M and gained market share. Home Care grew at a robust 18% in Q3 and by 13% in 9MFY12. The biggest brand Odonil witnessed strong growth across formats (blocks, aerosols etc.) and across regions. Odomos growth in non-institutional channel is back on track. Skin Care grew by 5% in Q3 and by 6% in 9M. Sales growth impacted by distribution realignment and seasonal factors. Dabur Gulabari, impacted by adverse seasonal conditions witnessed marginal contraction in Q3. Fem Bleach portfolio grew in double digits and is back on growth trajectory post the distribution re-alignment Digestives & Baby Care grew at a robust 19% in Q3 and by 10% for 9M. Hajmola performed well despite significant price increase on the back of enhanced media initiatives and launch of new variants and SKUs. Dabur Lal Tail also witnessed double digit growth driven by media initiatives. Health Supplements grew by 14% in Q3 and by 9% in 9M driven by strong growth in Dabur Honey and Chyawanprash. Dabur Chyawanprash grew in double digits, driven by media initiatives and activations. Dabur Honey reported robust growth across regions and channels OTC & Ethicals portfolio grew by 10% in Q3FY12 and by 4% in 9M. OTC portfolio grew by 14% in Q3and by 6% in 9M. Ethicals portfolio grew by 4% in Q3and by 2% in 9M. Going ahead, new packaging and other initiatives planned in all segments Foods grew by 17% in Q3and by 26% for 9M with growth across regions and channels. Supply side constraints impacted growth during the quarter. Going ahead new ahead, initiatives are planned in foods including launch of new variants and extensions International Business recorded a robust 38% growth (excluding acquisitions – Hobi & Namaste), led by strong performance in GCC, Egypt and Nigeria. Growth in constant currency terms was at 26.5% for Q3 and 20% in 9M, largely driven by volumes. The Nigeria business reported a 33% growth, while sales in GCC markets grew by 27%. Egypt too reported a 25% growth. Shampoos, hair creams and toothpastes were the key growth drivers in the international markets . The management said that it should maintain 17-20% growth for the next 2-3 years. Hobi posted revenues of Rs 40.5 crore in Q3and Rs 106 crore for 9MFY12. Sales grew by 44% during the quarter led by hair care and other personal care products. Investing strongly behind brands and portfolio to put the business on a strong growth trajectory. It was impacted by local currency depreciation. Mgmt plans to introduce Hobi products in MENA and India in the next 6 months through the modern trade channels. Namaste recorded revenues of Rs 148.5 crore, growth of 16% in Q3. Local manufacturing for Namaste commenced in RAK, UAE. It Plans to set up a plant in Nigeria for localised manufacturing. The management said that its A&P spending to remain high on account of new product launches and requirement of higher marketing efforts for the Hobi Kozmetic and Namaste Group. It expects to maintain ad spend to sales ratio at 15%. The company has started restructuring its rural distribution network by increasing its direct reach to improve its product mix and the through-put The management noted that competitive intensity in hair / oral care remains intense, but is stabilizing. In hair care, revenue growth is positive as the price cuts of FY11 are now in the base. It also indicated that juices as a category is witnessing higher competition from the cola majors. The management expects volume growth to recover contributed by food and hair oil. It expects to maintain 8-10% volume growth in the medium term. The management believes the current EBITDA margin to be bottomed out and expects a gradual improvement in the EBITDA margin led by softening of input prices and price hike on International Business product portfolio. ------------- Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday? |
Posted By: tejas.k
Date Posted: 12/May/2012 at 8:40pm
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what a consistent performer this has been !!. growing sales and eps 20% ( its not reflected in stock price over the last 2 yrs though. the price was way ahead of earnings). though it looks reasonably attractive at a TTM PE of 28, i am not convinced about the business. it has presence in a lot of products. but i cant think of any dominant product. in REAL fruit juice space, there is pepsico's Tropicana. i have never eaten chavanprash nor have i seen any of my relatives eat it. for toothpaste there is colgate/hul. for hair oil, there is marico. can somebody tracking throw some light on this? |
Posted By: FutureBull
Date Posted: 12/May/2012 at 9:04pm
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I think they are strong in pharma products and personal care (hair oil, fem brand etc)as well. But the leadership in chavanprash is well established. ------------- ‘The market always does what it’s supposed to — BUT NEVER WHEN’. |
Posted By: tejas.k
Date Posted: 14/May/2012 at 9:14pm
thats right. went through their investor presentation. surprised to see they are no 1 in fruit juice (52%). i always thought Tropicana dominated this segment. other areas where there are no 1 are ayurvedic tonics (67%). honey (50%). digestives (56%). skin care bleach (50%)..air fresheners, mosquito creams even in oral care where they are no 3, they have 13% share. this is decent considering Colgate and close up are iconic brands. overall doesn't look bad at all. source. their latest presentation. |