Buy Dabur India, target of Rs 91: India Infoline

India Infoline has recommended a buy raing on Dabur India with a target of Rs 91 in its November 3, 2008 research report. "Consolidated revenues grew by 17% yoy to Rs 13 billion led by price hikes and strong volume growth. Net profit increased by 12% yoy; excluding retail operations growth was higher at 18%. Dabur plans to scale up its presence in the shampoo and skin care categories, and build up its OTC portfolio, which is currently very small. The company is also looking at aggressively expanding its homecare portfolio, while the retail venture (under the 'new-u' brand) is expected to provide additional growth triggers going forward. The contribution of international business division has also increased to 19% of the total revenues."

"We expect the operating margins to remain flat due to rising input cost pressures and adspend. The retail venture is expected to record a loss of Rs 175 million in FY09 and is likely to break even by FY10-11. At the current market price of Rs 80, the stock is trading at 15.2x FY10E consolidated EPS of Rs 5.3. We recommend Buy rating on the stock, with a one-year price target of Rs 91 - an upside of 13.2%," says India Infoline's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol