Please refer to important disclosures at the end of this report
Dabur India (DIL) is a leading Indian consumer goods company with strong
portfolio of brands (Dabur Chyawanprash, Real, Hajmola, Vatika, Amla, Fem,
Honey, Meswak, Dabur Red) with focus largely on ayurvedic & healthcare
offerings. The company’s diverse product portfolio and presence in niche
categories has aided revenue growth at a robust 12.4% CAGR in FY10-17. DIL’s
EBITDA margins has improved from 17.34% in FY2012 to 22.53% in FY2017 an
improvement of 519bps . With a wave of demand for the ayurvedic & natural
products, the company has gained significant market share in ayurvedic brands
mainly in toothpaste, shampoos and hair oil categories. With the government’s
initiative to double farm income and expectation of good monsoons, we expect
DIL to be in a sweet spot to capitalise on a revival in rural consumption. Post
demonetisation, the company is also focusing on enhancing the direct reach and
also remains optimistic on revenue growth potential through modern trade and
e-commerce. Dabur has reported healthy top-line of 8% CAGR and bottom-line
of 15% CAGR over FY2012-17. Further, the company’s debt/equity ratio has
improved from 0.68 in FY2012 to 0.20 in FY2017 and also the cash flow has
improved from `596.93cr in FY2012 to `1236.77cr in FY2017.Dabur has been
reporting average return on equity (ROE) of 31.23% for the last 3 years and also
maintains healthy dividend payout of 31.82%.Hence Buy.
CMP `307
52 Week High / Low
Avg. Daily Volume
Market Cap (` cr)
BSE Sensex
Face Value (`)
Reuters Code
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Dabur Ltd
Others | FMCG
Sept 08, 2017
Dabur Ltd |FMCG
June 5, 2017
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Disclosure of Interest Statement Dabur
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)