Ticker: 500096 Equity: Rs 86.40 crore H/L: Rs 137/74
Dabur India (DIL) recently came out with its results, where
it could not math up to the expectations. Here, for Q4FY08
on the consolidated basis the company has posted a topline
growth of 14.30 per cent. The bottomline growth was not
good and showed a growth of only 3.50 per cent. But here
one should note that the lower earning growth was on
account of margin contraction of its retail venture (New -U)
and also due to higher tax payment.
But we are of the opinion that the company is facing margin
pressure on the Retail front initially, but the performance
of the retail segment will improve Hence as the company's
all the segments are expected to Show a good growth
along with the margin improvement the valuations are
expected to improve going ahead.
On the valuation front the CMP of Rs 99 discounts its
FY09E Earnings by 16x which is much lower as compared
to its peers like HUL and Nestle and hence we recommend
the investors to buy the scrip at current levels with a target
price of Rs 125 in next one year.
(Karvy Consultants)
Dabur India (DIL) recently came out with its results, where
it could not math up to the expectations. Here, for Q4FY08
on the consolidated basis the company has posted a topline
growth of 14.30 per cent. The bottomline growth was not
good and showed a growth of only 3.50 per cent. But here
one should note that the lower earning growth was on
account of margin contraction of its retail venture (New -U)
and also due to higher tax payment.
But we are of the opinion that the company is facing margin
pressure on the Retail front initially, but the performance
of the retail segment will improve Hence as the company's
all the segments are expected to Show a good growth
along with the margin improvement the valuations are
expected to improve going ahead.
On the valuation front the CMP of Rs 99 discounts its
FY09E Earnings by 16x which is much lower as compared
to its peers like HUL and Nestle and hence we recommend
the investors to buy the scrip at current levels with a target
price of Rs 125 in next one year.
(Karvy Consultants)
No comments:
Post a Comment