Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Dabur India
Acquisitions to provide boost going forward
Having met with management today at our 15th Annual India Investor
Conference in New Delhi, these are some of our takeaways...
„Topline growth to sustain at healthy levels
Consumer demand is holding well with double digit volume growth expected to
sustain. Revival in shampoos, new launches in OTC Pharma, pick up in Fem
Care and strong growth in hair Oils and Chyawanprash are expected to lead this
growth.
Margin pressures increasing but manageable
Gross margins are hurting on input cost rise. Company will try to manage margins
by taking further price hikes (currently running at 4% yoy) and judiciously cutting
back A&P spends.
Acquisitions to further support international business
growth
International business is running strong with exception of Egypt due to strife.
Expect strong pickup with integration of Hobi and Namaste to start kicking in right
earnest from next quarter onwards.
Retail business is back in focus
Looking to double the store count in Retail business over the next year. Will
consider future course of action once sufficient scale and profitability is achieved
to command significant value.
Price objective basis & risk
Dabur India (DBUIF)
Our preferred valuation methodology is a target P/E multiple on estimated oneyear-forward EPS. Our target multiple for Dabur is 24x, which on FY12E EPS of
Rs4.5 gives us our price objective of Rs110. Our target multiple is at marginal
discount to what Dabur is currently trading at for FY11E EPS and this is 10pc
ahead of its last five-year average trading multiple. The longer-term valuation
should sustain on robust earnings growth momentum led by growth drivers like
Fem care acquisition, new product launches and strong growth in international
division and margin expansion on mix improvement. Upside risks: Stronger-thanforecast demand, lower-than-expected input cost rise. Downside risks: Weak
monsoons affecting rural growth, stiffer competition and higher-than-expected
gestation costs of new product launches.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Dabur India
Acquisitions to provide boost going forward
Having met with management today at our 15th Annual India Investor
Conference in New Delhi, these are some of our takeaways...
„Topline growth to sustain at healthy levels
Consumer demand is holding well with double digit volume growth expected to
sustain. Revival in shampoos, new launches in OTC Pharma, pick up in Fem
Care and strong growth in hair Oils and Chyawanprash are expected to lead this
growth.
Margin pressures increasing but manageable
Gross margins are hurting on input cost rise. Company will try to manage margins
by taking further price hikes (currently running at 4% yoy) and judiciously cutting
back A&P spends.
Acquisitions to further support international business
growth
International business is running strong with exception of Egypt due to strife.
Expect strong pickup with integration of Hobi and Namaste to start kicking in right
earnest from next quarter onwards.
Retail business is back in focus
Looking to double the store count in Retail business over the next year. Will
consider future course of action once sufficient scale and profitability is achieved
to command significant value.
Price objective basis & risk
Dabur India (DBUIF)
Our preferred valuation methodology is a target P/E multiple on estimated oneyear-forward EPS. Our target multiple for Dabur is 24x, which on FY12E EPS of
Rs4.5 gives us our price objective of Rs110. Our target multiple is at marginal
discount to what Dabur is currently trading at for FY11E EPS and this is 10pc
ahead of its last five-year average trading multiple. The longer-term valuation
should sustain on robust earnings growth momentum led by growth drivers like
Fem care acquisition, new product launches and strong growth in international
division and margin expansion on mix improvement. Upside risks: Stronger-thanforecast demand, lower-than-expected input cost rise. Downside risks: Weak
monsoons affecting rural growth, stiffer competition and higher-than-expected
gestation costs of new product launches.
No comments:
Post a Comment