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Accumulate Dabur India; target of Rs 110: Angel Broking
Angel Broking is bullish on Dabur India and has recommended accumulate rating on the stock with a target of Rs 110 in its February 2, 2012 research report.
Angel Broking is bullish on Dabur India and has recommended accumulate rating on the stock with a target of Rs 110 in its February 2, 2012 research report.
"Dabur reported an impressive performance for 3QFY2012. Top-line growth was strong at 34.5% yoy, above our estimates, driven by a mix of volume and value growth and recent acquisitions. Earnings grew by 11.9% yoy, below our estimates. We maintain our Accumulate recommendation on the stock."
"During 3QFY2012, the company's domestic business growth stood at 16% yoy, while the international business (ex. acquisitions) grew by 38%yoy. The consumer care division grew by 15% yoy, with all categories registering healthy growth. Hobi and Namaste reported healthy top-line growth of 44% yoy and 16% yoy, respectively. The company reported a 416bp yoy decline in OPM due to increased input costs and a rise in ad spends and other expenses."
"Post 3QFY2012 results, we maintain our revenue and earnings estimates. We expect the company to grow at a ~20% CAGR over FY2011-13E, backed by its recent acquisitions. We have modeled in flat OPM for FY2012E and FY2013E due to sustained gross margin pressure and upon higher ad spends because of a stronger competitive environment. At the CMP, the stock is trading at 24x FY2013E EPS. We maintain our Accumulate rating on the stock with a target price of Rs110," says Angel Broking research report.
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