Dabur India, incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 106247.88 Crore) operating in FMCG sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 2696.38 Crore, up 11.34 % from last quarter Total Income of Rs 2421.77 Crore and up 31.42 % from last year same quarter Total Income of Rs 2051.77 Crore. Company reported net profit after tax of Rs 438.37 Crore in latest quarter.
Investment Rationale
Dabur’s Q1FY22 results beat estimates. Consolidated revenue/EBITDA/APAT grew at 31.9%/32.5%/28.4% YoY. India FMCG business surged 35.4%, led by solid 34.4% volume growth, while international business (25.6% of sales) grew 34.2% (CC). Outstanding efforts coupled with strong tailwinds in healthcare led Dabur to continue its stellar performance. Despite challenging market conditions, its rural distribution efforts drove its power brand strategy. Gross margin declined 131bp to 48.1% on 8- 10% cost inflation. Despite jump in ad-spend (+29.3%) and other expenditure (+33.9%), EBITDA grew 32.5%. It remains sanguine on Dabur’s growth prospects, driven by healthcare segment. The management has guided single-digit volume and 4-5% price increases.
Promoter/FII Holdings
Promoters held 67.4 per cent stake in the company as of June 30, 2021, while FIIs held 20.6 per cent, DIIs 4.7 per cent and public and others 7.4 per cent.
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