Comments
Axis Direct
Dabur India (Buy)
CMP: ₹448.55
Target: ₹495
Dabur India is an FMCG company. The company operates in various product categories, such as hair care, oral care, healthcare, skin care, home care and foods.
Key takeaways: a) Dabur posted strong quarterly earnings led by 12.4 per cent broad-based volume growth, while rupee impacted international business adversely. Segment wise hair care (up 23.8 per cent y-o-y), digestives (up 22.5 per cent) and skin care (up 19.3 per cent) outperformed while OTC & Ethicals (up 17.6 per cent) also grew well. Home care, oral care and foods lagged behind growing by 9-11 per cent.
b) Management expects double digit volume growth for FY19. On margin front, while it expects pressure to ease out from Q4FY19 on lower raw material prices, price hikes (about at 3.6 per cent at MRP level in current quarter) and better product mix. Operating leverage benefit is also expected to drive EBITDA margins going forward.
c) The company plans to launch various new products across categories such as juices, homecare, toothpastes, etc, in FY20. Management remains optimistic of recovery in international business by H2FY20 and sustained growth in domestic business.
We remain optimistic on managements vision of broad based growth, market share gains and recovery in international business.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.