Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Dabur India: REDUCE - Q4FY21 Result Update - YES Securities

Posted On: 2021-05-08 11:25:49 (Time Zone: UTC)


Reduced healthcare momentum and margin headwinds offset by recovery in other segments

CMP Rs535, Target Rs550, Upside 2.8%

Our view: The 4Q performance was weak impacted by pipeline inventory correction and normalization of strong growth seen in healthcare in last couple of quarters. Margins could not move up despite 3% price hike and strong cost savings given 6% inflation in commodities and higher A&P spends. The international business got back on track and is likely to sustain a double-digit growth rate. While the F&B and HPC categories are expected to recover well in FY22, the key overhangs would be a moderation in healthcare portfolio and pressure on margins which can constrain the NPD pipeline. Although we like Dabur's increased aggression, growth focus, strong rural reach expansion strategy amidst an expanding Ayurveda/herbal market, current valuations limit upside potential, especially given the growth and margin headwinds in in FY22. The pandemic lasting longer than expected could again help the healthcare portfolio regain lost momentum, which would be an upside risk to our estimates.

For now, we expect range-bound performance for the stock and model in revenue/EBITDA/PAT CAGR of 11%/11%/13% over FY21-23E. We assume coverage with a REDUCE rating with a PT of Rs 550 based on 45x FY23E earnings, in-line with its 5-yr average.

Result highlights

Quarter results - Soft results with 25.4% growth in revenue from a weak base with 30% growth in India (25.4% volume growth) and 19% growth in international business, margins flat at 18.9% and PAT growth of 25.5%; impacted by pipeline correction.

Portfolio mix - Healthcare grew 23% with share gains in chyawanprash and honey and strong growth in OTC/ethicals, HPC grew 33% led by share gains in oral care, hair oils nd shampoo, F&B grew 28% led by share gains in juices and traction in foods business.

Margins - Significant commodity inflation impacted GMs by 40bps, A&P spends higher by 120bps; offset by strong cost savings to maintain stable margins at 18.9%.

Outlook - Localised restrictions leading to last mile supply chain disruptions but company better prepared, current production close to normal, discretionary portfolio to get impacted in near-term but offset by strong traction seen since mid-April in immunity building healthcare portfolio.

Shares of DABUR INDIA LTD. was last trading in BSE at Rs.534.7 as compared to the previous close of Rs. 545.45. The total number of shares traded during the day was 394027 in over 11239 trades.

The stock hit an intraday high of Rs. 550 and intraday low of 532.5. The net turnover during the day was Rs. 211714243.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.


Other Headlines:

KEC International: Company Update - Building on diversification - HDFC Securities

LIC Housing Finance - Q4 FY21 Result Update - YES Securities

Entertainment Network Ltd - Beating on solutions business - ICICI Securities

Asahi India Glass - Operating leverage, product mix aid margins - ICICI Securities

Whirlpool of India - Market leading revenue growth - ICICI Securities

Lemon Tree Hotels - Wait for recovery gets longer - ICICI Securities

LIC Housing Finance - Stupendous growth momentum; needs to shore up provisioning and capital buffer - ICICI Securities

Quant Pick - Bank of Baroda - ICICI Direct

Company Update - Amara Raja Batteries - Investor Event Outcome - ICICI Direct

Q4FY21 Result Update - Bhel - ICICI Direct

Q4FY21 Company Update - NRB Bearings - ICICI Direct

CESC - Q4FY21 First Cut - ICICI Direct

Q4FY21 Result Update - Entertainment Network India - ICICI Direct

LIC Housing Finance Results Review Report - Balance sheet beefs up; P&L to stay soft - HDFC Securities

Jubilant FoodWorks 4QFY21 Results Review Report - Missing excitement; recovery priced in - HDFC Securities

BFSI Sector Update - MFI Consultation Paper Takeaways - Incrementally positive for NBFC-MFIs - HDFC Securities

Q4FY21 Result Update - JK Cement - ICICI Direct

Q4FY21 Result Update - Minda Industries - ICICI Direct

Stock Tales - Indo Count Industries - ICICI Direct

IPO Review - Krishna Institute of Medical Sciences Ltd - ICICI Direct

Q4FY21 Company Update - Greenply Industries - ICICI Direct

IPO Review - Dodla Dairy Ltd - ICICI Direct

Lemon Tree Hotels - Q4FY21 First Cut - ICICI Direct

Jubilant Foodworks - Q4FY21 investor call takeaways - YES Securities

Greenply Industries Ltd - Q4 FY21 Result Update - YES Securities

Whirlpool of India Ltd - Q4 FY21 Result Update - YES Securities

New India Assurance Report - CoRs disappoint yet again - HDFC Securities

Maintain BUY on Kajaria Ceramics - Performance shines through; outlook bright - HDFC Securities

Retain ADD on Deccan Cement - Volume strong; high other expense dents margin - HDFC Securities

Reiterate ADD on NHPC - Lower generation impacts earnings - HDFC Securities

Maintain BUY on JK Cement - Robust volume and utilisation - HDFC Securities

Maintain BUY on DLF - Gaining traction - HDFC Securities

Maintain BUY on Capacite Infraprojects - Marginal miss - HDFC Securities

DLF Ltd - Q4 FY21 Result Update - YES Securities

Greenply Industries Ltd - Q4FY21 first cut - YES Securities

Coal India - Coal makes a comeback - ICICI Securities

Kajaria Ceramics - Q4FY21 beat largely priced in - ICICI Securities

JK Cement - Expansion to drive volume growth - ICICI Securities

Info Edge India - Concerns around Zomato's gig work unwarranted - ICICI Securities

Bharat Heavy Electricals - Higher provisioning impacts margins - ICICI Securities

Mahindra Lifespace Developers - Well poised for growth; initiate with BUY - ICICI Securities

Kajaria Ceramics - Q4FY21 First Cut - ICICI Direct

Gladiator Stocks - Tata Metaliks - ICICI Direct

Q4FY21 Result Update - Gail (India) - ICICI Direct

Q4FY21 Result Update - Engineers India - ICICI Direct

IPO Review - Shyam Metalics & Energy Ltd - ICICI Direct

Coal India - Q4FY21 First Cut - ICICI Direct

Capacite Infraprojects - Q4 FY21 results first cut: Robust performance - YES Securities

Cochin Shipyard - Q4 FY21 results first cut: Strong performance - YES Securities

CARE Ratings - Q4 FY21 results first cut: Stellar Performance - YES Securities


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020