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Dabur India Ltd.
B uilding a supplements business
�� News: Dabur buys 30-Plus
Dabur is to acquire Ajanta Pharma’s energizer brand ‘30-Plus’, the oldest herbal
energizer brand in the country. It was launched in 1990. According to media
reports, the brand consideration is ~Rs500m.
�� Acquisition to augment the dietary supplements business
Dabur launched NutriGo, a health supplement which aids nutrition and antioxidant
requirements. Ajanta’s 30-Plus enjoys good brand recall and we believe it
should add to the nutrition supplement business that Dabur wants to build. Dabur
also plans to launch products for pain management and gastro problems.
�� Focus on OTC business
MNCs believe India is the next consumer acquisition geography and we expect the
personal care business to witness higher media spends. We believe this will make
market share acquisition in Consumer Care tougher for Dabur. We believe the
company will focus more on its CHD (Healthcare), OTC, and international
businesses in the next 2-3 years.
�� Valuation: maintain Neutral rating, price target of Rs110
We continue to maintain a Neutral rating on the stock with a price target of Rs110.
Our price target is derived from a DCF-based methodology and we explicitly
forecast long-term valuation drivers using UBS’s VCAM tool. We assume a
WACC of 11% and a terminal year growth rate of 3%.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
UBS Investment Research
Dabur India Ltd.
B uilding a supplements business
�� News: Dabur buys 30-Plus
Dabur is to acquire Ajanta Pharma’s energizer brand ‘30-Plus’, the oldest herbal
energizer brand in the country. It was launched in 1990. According to media
reports, the brand consideration is ~Rs500m.
�� Acquisition to augment the dietary supplements business
Dabur launched NutriGo, a health supplement which aids nutrition and antioxidant
requirements. Ajanta’s 30-Plus enjoys good brand recall and we believe it
should add to the nutrition supplement business that Dabur wants to build. Dabur
also plans to launch products for pain management and gastro problems.
�� Focus on OTC business
MNCs believe India is the next consumer acquisition geography and we expect the
personal care business to witness higher media spends. We believe this will make
market share acquisition in Consumer Care tougher for Dabur. We believe the
company will focus more on its CHD (Healthcare), OTC, and international
businesses in the next 2-3 years.
�� Valuation: maintain Neutral rating, price target of Rs110
We continue to maintain a Neutral rating on the stock with a price target of Rs110.
Our price target is derived from a DCF-based methodology and we explicitly
forecast long-term valuation drivers using UBS’s VCAM tool. We assume a
WACC of 11% and a terminal year growth rate of 3%.
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