Dabur India - 4QFY2013 Result Update - Angel Broking

For 4QFY2013, Dabur India (Dabur) posted a 12.3% yoy growth in its consolidated top-line. The company's net profit rose by 17.6% yoy to Rs. 201cr, in-line with estimates, aided by strong operational performance.

Key highlights: The domestic consumer business posted a 15.1% yoy growth with volume growth coming in at 12.3%. In terms of category, Foods grew by 22.6% yoy while Home care grew by 33.3% yoy. The Hair care portfolio grew by 9.6% yoy, with Shampoos growing by 29.4% yoy. The company's international business posted a growth of 11.6%, with the organic international business posting a growth of 19.7% yoy. The OPM stood at 17.0%, up 121bp yoy, led by a healthy expansion in gross margins due to reduction in commodity costs and also lower advertising and promotion expenditure as a percentage of sales which fell by 90bp yoy to 12.5%. Finance costs rose by 161.9% yoy to Rs. 15cr.

Outlook and valuation: We expect Dabur's top-line to post an ~16.5% CAGR over FY2013-15E. The bottom-line is expected to post a 19.5% CAGR, aided by top-line growth and margin expansion. At the current market price, the stock is trading at 25.1x FY2015E EPS. We recommend Neutral on the stock.

Source : Equity Bulls

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