Angel Broking neutral on Dabur India

Angel Broking has maintained neutral rating on Dabur India, in its July 27, 2012 research report.

“For 1QFY2013, Dabur India (Dabur) posted 21.4% yoy growth in its top-line to Rs1,462cr, driven by a mix of volume and value growth. The company’s net profit rose by 16.9% to Rs149cr on account of robust top-line performance and steady margins on a yoy basis.”

“During 1QFY2013, Dabur’s domestic business growth stood at 16.0% yoy, driven by healthy 11.6% yoy volume growth. Food category posted robust 34.5% yoy growth aided by good performance of real fruit juices. International business (excluding acquisitions) grew by 24.0% yoy due to good performance in Nigeria, Egypt, GCC and Nepal. The company reported flat OPM at 14.1% since cooling off in input costs was offset by higher advertising expenses yoy.”

“We expect Dabur’s top line to post a ~15.3% CAGR over FY2012–14E, backed by its robust performance in domestic as well as international markets. The bottom line is expected to post an 18.3% CAGR, aided by top-line growth and margin expansion. At the CMP, the stock is trading at 22.8x FY2014E EPS. We recommend Neutral on the stock,” says Angel Broking research report.  

Institutional holding more than 40% in Indian cos

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