DABUR INDIA Great Buying opportunity

A truly Indian born and bred FMCG, Dabur India has done well for itself for the second quarter ended 30th September 2008. Irrespective of the overall slowdown, there are some producst like oil, shampoo, soaps which people simply do not stop using. On a consolidated basis, Dabur’s consolidated revenue for Q2FY09 rose 18.4% on a YoY at Rs.699.30 crores. Its international business showed a robust performance, growing by 40.5%, led by growth in GCC, Egypt, Nigeria, Yemen and North African markets. Sales in African markets surged 65%. Dabur Egypt grew by a robust 88% and Bangladesh sales surged by 85%. Net Profit for the quarter rose 12.2% at Rs.107.41 crore.

Dabur India's FMCG portfolio includes five flagship brands with distinct brand identities -- Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, Réal for fruit-based beverages and Anmol for affordable personal care business.

During the quarter, hair oil reported a 20% growth in the quarter led by Anmol Coconut Oil and Dabur Amla Hair Oil. Shampoos grew by 36%, while Baby & Skin Care business reported 18% growth following the expansion of Dabur Gulabari skin care range with the introduction of Dabur Gulabari Moisturising Cream and Lotion. It launched a new product in the Q1 - hard surface cleaner brand ‘Dazzl’, and this has garnered a market share of 6.1% (July-September 08) in the floor and kitchen cleaner category.

Dabur also reconstituted its Board of Directors with the induction of two new independent directors - Aviva India’s former MD, Bert Paterson and Mr. Analjit Singh, Co-Founder and Chairman of Max India. It has also signed in Dhoni as its new brand ambassador, replacing Amitabh Bachchan.

Currently quoted at around levels of Rs.80, it has recovered from the low of Rs.60, which was a great buying opportunity.
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