October 13, 2017 - Religare Online · Dabur India Ltd (DIL) is the second largest FMCG company in India, in terms of Product portfolio. It has a strong portfolio of brands (Dabur

October 13, 2017

Investment Rationale

Dabur India Ltd (DIL) is the second largest FMCG company in India, in terms of Product portfolio. It has a strong portfolio of brands (Dabur Chyawanprash, Real, Hajmola, Vatika, Amla, Fem, Honey, Meswak, Dabur Red) with the focus largely on ayurvedic & healthcare offerings.

The company’s diverse product portfolio (hair care, oral care, skin care, home care, health supplements, digestives, OTC & ethicals) and presence in niche categories has aided revenue growth at a robust ~12% CAGR in FY10-17.

It has one of the widest distribution network among FMCG companies. It augmented its rural reach through its ‘Project Double’. Also, the company increased its urban coverage by capturing chemist network through initiative called ‘Project CORE’.

While there could be some cautiousness in the near-term on its performance because of GST implementation, with the government’s initiative to double the farm income and expectation of good monsoon, DIL could be in a sweet spot to capitalise on a revival in rural consumption with almost 50% contribution from rural operations.

Dabur India Ltd.

Technical Recommendation

321.95 CMP (`)

Stop Loss– Closing (`) 298

Target (`) 365

Time Horizon 1-2 Months

Data Matrix

Equity (`Cr) 176.2

EPS (`) 7.1

Book Value (`) 27.5

Face Value (`) 1

P/E(x) 46

Dividend Yield (%) 0.7

Beta 0.7

52 Week High / Low 328/259

ROE% 28.4

Avg. Weekly Volume 10,21,050

Technical Outlook Technical Chart (Weekly)

In FMCG space, Dabur is a renowned name for its consistent performance and stable uptrend. On long term charts, it has been strongly holding uptrend since 2003.

It has a tendency to take a pause and consolidate after a strong directional move. And, in line with past instances, it had been consolidation in a broader range of 250-320 for last two year and witnessed breakout from the same of late.

Technically, its chart structure combined with positioning of the confirmation indicators are pointing towards strong up move ahead. Traders shouldn’t miss this opportunity and accumulate fresh in the given range of 320-324 with close below stop loss of 298 for the target of 365.

Source : Capitaline

BSE Code 500096

NSE Code DABUR

Sector PERSONAL CARE

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Follow-up of Recommendations Follow-up of Recommendations

Rec. Date Scrip Name Rec. Price

Exited On Return

% Remarks

15-Sep-2017 BERGEPAINT 264.45 25-Sep-2017 -6.22 Booked loss as SL triggered at 248

01-Sep-2017 EXIDEIND 204.25 26-Sep-2017 1.34 Booked profit as trailed SL triggered at 207

04-Aug-2017 KTKBANK 148.70 27-Sep-2017 -3.16 Booked loss as trailed SL triggered at 144

24-Aug-2017 ICICIPRULI 422.90 15-Sep-2017 0.50 Booked profit as trailed SL triggered at 425

12-May-2017 RALLIS 246.35 10-Aug-2017 -5.41 Booked loss as trailed SL triggered at 233

13-April-2017 ALLCARGO 174.75 08-Aug-2017 -3.29 Booked loss as trailed SL triggered at 169

07-July-2017 HEIDELBERG 132.10 04-Aug-2017 -3.86 Booked loss as trailed SL triggered at 127

30-June-2017 DABUR 290.90 02-Aug-2017 3.47 Booked profit as trailed SL triggered at 301

16-June-2017 HDIL 91.60 04-Aug-2017 -12.11 Booked loss as SL triggered at 80.50

02-June-2017 EMAMI 1139.10 28-June-2017 -6.50 Booked loss as SL triggered at 1065

10-Feb-2017 JBMA 277.60 27-June-2017 -3.09 Booked loss as trailed SL triggered at 269

26-May-2017 HSIL 340.15 20-June-2017 17.46 Booked Profit at 399.55

05-May-2017 NCC 94.55 25-May-2017 -7.98 Booked loss as trailed SL triggered at 87

21-April-2017 KESORAMIND 167.10 05-May-2017 -11.43 Booked loss as SL triggered at 148

03-March-2017 DABUR 277.25 03-May-2017 0.63 Booked profit as trailed SL triggered at 279

31-March-2017 JKTYRE 131.95 24-April-2017 20.39 Booked Profit at 160

03-March-2017 JISLJALEQS 94.30 26-April-2017 21.35 Booked Profit at 114.80

24-March-2017 KTKBANK 138.80 11-April-2017 14.41 Booked Profit at 154.75

17-Feb-2017 SONATSOFTW 189.35 22-March-2017 -9.16 Booked loss as trailed SL triggered at 172

20-Jan-2017 PFS 41.60 9-March-2017 -6.25 Booked loss as trailed SL triggered at 39

03-Feb-2017 KTKBANK 120.10 1-March-2017 17.00 Booked Profit at 137.80

09-Dec-2016 MOTHERSUMI 321.60 1-March-2017 12.53 Booked Profit at 361.90

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S. No. Statement Answer

Tick appropriate

Yes No

I/we or any of my/our relative has any financial interest in the subject company? [If answer is yes, nature of Interest is given below this table]

No

I/we or any of my/our relatives, have actual/beneficial ownership of one per cent. or more securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance?

No

I / we or any of my/our relative, has any other material conflict of interest at the time of publication of the research report or at the time of public appearance?

No

I/we have received any compensation from the subject company in the past twelve months?

No

I/we have managed or co-managed public offering of securities for the subject company in the past twelve months?

No

I/we have received any compensation for brokerage services from the subject company in the past twelve months?

No

I/we have received any compensation for products or services other than brokerage services from the subject company in the past twelve months?

No

I/we have received any compensation or other benefits from the subject company or third party in connection with the research report?

No

I/we have served as an officer, director or employee of the subject company? No

I/we have been engaged in market making activity for the subject company? No

Team Members

Ajit Mishra [email protected]

SS..No. Name

(s) of RA. Signtures of RA

Serial Question of question which the signing RA needs to make a separate declaration / answer

Yes No.