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S p l e n d i d p e r f o r m a n c e…
Dabur India reported robust Q3FY12 numbers with net sales growth of
34.5% to | 1462.6 crore compared to | 1087.8 crore in Q3FY11 led by
~10.8% volume, ~9% price and ~14.3% acquired company’s sales
growth. The strong growth can be attributed to the healthy performance
of the international business division (IDB). IDB sales witnessed sales
growth of 37.8%. However, EBITDA margins dipped 420 bps from 19.4%
to 15.2% due to high raw material cost and a substantial increase in
operating expenses. Interest expenses increased 240% to | 18.3 crore
due to higher debt taken for the acquisitions of Hobi/Namasté. Net profit
grew 11.5% on the back of higher EBITDA.
ƒ Highlight of quarter
During the quarter, the company witnessed a strong performance of the
consumer care and international business division. Hair care, health
supplements and oral care, which contributes ~29%, 22% and 18%,
witnessed sales growth of 19.6%, 13.5% and 11.6%, respectively.
International division sales grew 37.8% with Gulf countries witnessing
sales growth of 27% and Egypt and Nigeria sales growing 25% and 33%,
respectively. International sales growth has been strong in shampoo, hair
crème and toothpaste categories. The acquired companies also
witnessed very strong growth with Hobi sales growing 44% and Namasté
witnessing sales growth of 16%.
V a l u a t i o n
Currently, the stock is trading at 25.2x and 19.9x its FY12E and FY13E EPS
of | 3.8 and | 4.8, respectively. With very strong growth in the
international business, Dabur’s presence in the Middle East is
continuously increasing. With the revival in slow growth categories like
shampoos and sustainable growth in foods categories, the company’s
performance is likely to remain robust in FY13. We expect margins to also
improve in FY13 as raw material pressure will subside in two or three
quarters. Hence, we maintain our BUY rating and target price of | 120
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
S p l e n d i d p e r f o r m a n c e…
Dabur India reported robust Q3FY12 numbers with net sales growth of
34.5% to | 1462.6 crore compared to | 1087.8 crore in Q3FY11 led by
~10.8% volume, ~9% price and ~14.3% acquired company’s sales
growth. The strong growth can be attributed to the healthy performance
of the international business division (IDB). IDB sales witnessed sales
growth of 37.8%. However, EBITDA margins dipped 420 bps from 19.4%
to 15.2% due to high raw material cost and a substantial increase in
operating expenses. Interest expenses increased 240% to | 18.3 crore
due to higher debt taken for the acquisitions of Hobi/Namasté. Net profit
grew 11.5% on the back of higher EBITDA.
ƒ Highlight of quarter
During the quarter, the company witnessed a strong performance of the
consumer care and international business division. Hair care, health
supplements and oral care, which contributes ~29%, 22% and 18%,
witnessed sales growth of 19.6%, 13.5% and 11.6%, respectively.
International division sales grew 37.8% with Gulf countries witnessing
sales growth of 27% and Egypt and Nigeria sales growing 25% and 33%,
respectively. International sales growth has been strong in shampoo, hair
crème and toothpaste categories. The acquired companies also
witnessed very strong growth with Hobi sales growing 44% and Namasté
witnessing sales growth of 16%.
V a l u a t i o n
Currently, the stock is trading at 25.2x and 19.9x its FY12E and FY13E EPS
of | 3.8 and | 4.8, respectively. With very strong growth in the
international business, Dabur’s presence in the Middle East is
continuously increasing. With the revival in slow growth categories like
shampoos and sustainable growth in foods categories, the company’s
performance is likely to remain robust in FY13. We expect margins to also
improve in FY13 as raw material pressure will subside in two or three
quarters. Hence, we maintain our BUY rating and target price of | 120
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