Mehabe score: 4 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Dabur India is one of the leading fast moving consumer goods (FMCG) players dealing in consumer care and food products.(Source : 202003 Annual Report Page No:280)
Main Points
In Chawanprash segment they have around 60% Market share in India.
In Honey segment they have around 40% Market share in India.Site:DABURMain Symbol:DABUR
Stock trades at 588.0, above its 50dma 567.64. It also trades above its 200dma 535.42. The stock remains bullish on techicals
The 52 week high is at 605.00 and the 52week low is at 462.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 24.88%
– has been maintaining a healthy dividend payout of 39.98%
-Debtor days have improved from 30.46 to 21.44 days.
Weakness
– Stock is trading at 13.57 times its book value
-The company has delivered a poor sales growth of 3.97% over past five years.
Competition
– The industry trades at a mean P/E of 42.1x. Dabur India trades at the industry’s max P/E of 61.41x. DABUR trades at a P/E of 61.4x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 9.0. DABUR has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 8.8%. The max 1- month return was given by Kaya Ltd: a return of 48.23 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2337.0 cr compared to Rs 1865.0 cr for period ended Mar 2020, a rise of 25.3%
Operating Profits reported at Rs 442.0 cr for period ended Mar 2021 vis-vis 352.0 for period ended Mar 2020 .
Operating Margins expanded 3.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.14 compared to Rs 2.78 for previous quarter ended Dec 2020 and Rs 1.59 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 9562.0 cr for period ended Mar 2021 vis-vis sales of Rs 8685.0 cr for the period ended Mar 2020, a growth of 9.2%. The 3 year sales cagr stood at 7.4%.
Net Profit reported at Rs 1693.0 cr for period ended Mar 2021 vis-vis sales of Rs 1445.0 cr for the period ended Mar 2020, rising 14.6%.
Company recorded a Net Profit CAGR of 7.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 2115.0 cr for period ended Mar 2021 vis-vis Rs 1614.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 24.0% compared to 25.0% over the last 3 Years. – The stock has given a return of 17% on a 1 Year basis vis-vis a return of 16% over the last 3 Years. – The compounded sales growth on a TTM bassis is 10% vis-vis a compounded sales growth of 7% over the last 3 Years. – The compounded profit growth on a TTM basis is 12% vis-vis a compounded profit growth of 7% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 20.59% vis-vis 19.77% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 7.38% vis-vis 7.51% for Mar 2021
Conclusion
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 24.88%
– has been maintaining a healthy dividend payout of 39.98%
-Debtor days have improved from 30.46 to 21.44 days. – Stock is trading at 13.57 times its book value
-The company has delivered a poor sales growth of 3.97% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 567.64 and is trading at 588.0, thus bullish price action wise.
