Buy Dabur India; target of Rs 147: Firstcall Research

Firstcall Research is bullish on Dabur India and has recommended buy rating on the stock with a target of Rs 147 in its January 29, 2013 research report.
 
“Dabur India Limited is one of India’s leading FMCG Companies. Building on a legacy of quality and experience for over 125 years, Dabur is India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care Company. Dabur India's FMCG portfolio includes five flagship brands with distinct brand identities -- Dabur as the master brand for natural healthcare products, Vatika for premium hair care, Hajmola for digestives Real for fruit-based beverages and Fem for fairness bleaches. Dabur is today India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care Company. Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products.”
 
“Dabur's FMCG portfolio today includes five flagship brands with distinct brand identities Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, real for fruit juices and beverages and Fem for fairness bleaches and skin care products. Dabur operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. The company has a wide distribution network, covering over 2.8 million retail outlets with a high penetration in both urban and rural markets. Dabur's products is also had a huge presence in the overseas markets and are available in over 60 countries across the globe. Its brands are highly popular in the Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur India Limited has marked its presence with significant achievements and commands a market leadership status. The company’s story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to partners and stakeholders. The results of the company’s policies and initiatives speak for themselves.”
 
“DABUR INDIA LTD is now a leading naturebased health and family care Products Company is among the top producers of FMCG in the world and the largest in India, reported its financial results for the quarter ended 31st December, 2012. Dabur India Ltd has maintained strong growth momentum and continues to register sales growth ahead of the market in several key categories. The company’s net profit leads to Rs.2111.10 million against Rs.1728.20 million in the corresponding quarter ending of previous year, hikes by 22.16%. Revenue for the quarter rose 11.82% to Rs.16359.80 million from Rs.14630.80 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.1.21 a share during the quarter, registering at 22.10% increase over previous year period. Profit before interest, depreciation and tax is Rs.2965.40 millions as against Rs.2425.80 millions in the corresponding period of the previous year.”
 
“At the current market price of Rs.130.25, the stock P/E ratio is at 29.29 x FY13E and 25.59 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.4.45 and Rs.5.09 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 16% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 20.11 x for FY13E and 17.70 x for FY14E. Price to Book Value of the stock is expected to be at 9.11 x and 6.72 x respectively for FY13E and FY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 147 for medium to long term investment,” says Firstcall Research report.

Public holding more than 90% in Indian cos

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