Dabur India - 1QFY2013 Result Update - Angel Broking

For 1QFY2013, Dabur India (Dabur) posted 21.4% yoy growth in its top-line to Rs.1,462cr, driven by a mix of volume and value growth. The company's net profit rose by 16.9% to Rs.149cr on account of robust top-line performance and steady margins on a yoy basis.

Margins remain flat: During 1QFY2013, Dabur's domestic business growth stood at 16.0% yoy, driven by healthy 11.6% yoy volume growth. Food category posted robust 34.5% yoy growth aided by good performance of real fruit juices. International business (excluding acquisitions) grew by 24.0% yoy due to good performance in Nigeria, Egypt, GCC and Nepal. The company reported flat OPM at 14.1% since cooling off in input costs was offset by higher advertising expenses yoy.

Outlook and valuation: We expect Dabur's top line to post a ~15.3% CAGR over FY2012-14E, backed by its robust performance in domestic as well as international markets. The bottom line is expected to post an 18.3% CAGR, aided by top-line growth and margin expansion. At the CMP, the stock is trading at 22.8x FY2014E EPS. We recommend Neutral on the stock.

Source : Equity Bulls

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