Hello and welcome back to one more interesting article wherein we’ll discuss the Dabur share which was analyzed earlier and has achieved the target predicted by us in a span of 55 days.
Let’s check the parameters which helped the Dabur share to achieve its total target of 12% approximately in 72 days.
Table of Contents
BUSINESS ANALYSIS FOR TARGET ACHIEVEMENT
Company management in one of its post earnings conference calls revealed that the rural market registered 12% growth as compared with 9% for urban.
Dabur India is planning to expand its village coverage from 83,500 to 90,000 next year (FY22).
The commentary of the company indicated a stable operating margin outlook which would be led by more hikes in prices and savings of cost from Project Samriddhi.
Dabur India has a total distribution reach of 6.9 million with direct reach of 1.3 million outlets.
The company is planning to expand its direct distribution by 1.5 million outlets in the next two years.
Due to following points the company is attaining interest from the investors and traders:
a. Good recovery in the demand of juices and out of home products.
b. Great strategy of replicating nature’s template to shampoos keeping toothpaste as their benchmark.
c. Innovation funnel.
d. Getting more involved in e-commerce.
The revenue of consumer care business segment went up by 7.68%
Revenue from food business went up by 44.01%
Retail business revenue went up by a massive percentage of 67.46.
The revenue from other segments also increased significantly by 39.28% in the quarter ended 30-09-2021.
FINANCIAL ANALYSIS FOR TARGET ACHIEVEMENT
QUARTERLY RESULTS:
Figures in Rs. Crores
| Quarterly Results | Dec 2018 | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 |
| Sales | 2199 | 2128 | 2273 | 2212 | 2353 | 1865 | 1980 | 2516 | 2729 | 2337 | 2612 | 2818 |
| Expenses | 1754 | 1671 | 1816 | 1722 | 1860 | 1513 | 1563 | 1947 | 2155 | 1895 | 2060 | 2197 |
| Operating Profit | 445 | 457 | 458 | 490 | 493 | 352 | 417 | 569 | 574 | 442 | 552 | 620 |
| OPM % | 0.2 | 0.21 | 0.2 | 0.22 | 0.21 | 0.19 | 0.21 | 0.23 | 0.21 | 0.19 | 0.21 | 0.22 |
| Other Income | 76 | -9 | 54 | 42 | 54 | 56 | 72 | 88 | 81 | 85 | 85 | 112 |
| Interest | 17 | 12 | 15 | 15 | 10 | 9 | 8 | 7 | 7 | 9 | 8 | 8 |
| Depreciation | 45 | 46 | 53 | 54 | 54 | 59 | 57 | 60 | 57 | 67 | 61 | 63 |
| Profit before tax | 460 | 389 | 443 | 462 | 482 | 340 | 424 | 590 | 591 | 452 | 568 | 661 |
| Tax % | 0.2 | 0.05 | 0.18 | 0.13 | 0.17 | 0.17 | 0.19 | 0.18 | 0.16 | 0.16 | 0.23 | 0.24 |
| Net Profit | 366 | 370 | 363 | 403 | 398 | 281 | 342 | 482 | 492 | 378 | 437 | 504 |
| EPS in Rs | 2.07 | 2.1 | 2.05 | 2.28 | 2.25 | 1.59 | 1.93 | 2.73 | 2.78 | 2.14 | 2.47 | 2.85 |
For the quarter ended 30-09-2021, the company reported a sales of ₹ 2,818 which is an increase of 10% from the sales registered in the year ago period.
The expenses have also increased gradually but it is evident that the company is using the revenue to increase its business.
Net profit is also increasing steadily and is at an all-time high which shows the focus of the company on the growth aspect.
BALANCE SHEET:
Reserves have increased steadily and are at an all-time high in the quarter ended 30-09-2021, which shows the massive interest by the investors.
Borrowings also increased slightly which is not a major concern for the company.
Figures in Rs. Crores
| Balance Sheet | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Sep 2021 |
| Share Capital | 174 | 174 | 174 | 176 | 176 | 176 | 176 | 177 | 177 | 177 | 177 |
| Reserves | 1543 | 1921 | 2482 | 3178 | 3995 | 4671 | 5530 | 5455 | 6429 | 7487 | 7962 |
| Borrowings | 1068 | 1151 | 708 | 734 | 805 | 975 | 938 | 699 | 522 | 509 | 818 |
| Other Liabilities | 1415 | 1462 | 1948 | 2019 | 1956 | 1910 | 2058 | 2106 | 2209 | 2661 | 2700 |
| Total Liabilities | 4200 | 4709 | 5312 | 6106 | 6932 | 7732 | 8702 | 8437 | 9337 | 10833 | 11658 |
| Fixed Assets | 1641 | 1582 | 1767 | 1877 | 1667 | 1958 | 2028 | 1969 | 2253 | 2243 | 2310 |
| CWIP | 27 | 93 | 22 | 50 | 45 | 42 | 42 | 64 | 147 | 147 | 173 |
| Investments | 483 | 929 | 1076 | 1813 | 2691 | 3240 | 3805 | 3359 | 2800 | 4160 | 5446 |
| Other Assets | 2050 | 2105 | 2447 | 2365 | 2529 | 2492 | 2827 | 3045 | 4137 | 4283 | 3729 |
| Total Assets | 4200 | 4709 | 5312 | 6106 | 6932 | 7732 | 8702 | 8437 | 9337 | 10833 | 11658 |
SHARE HOLDING SYNOPSIS
| Share Holding Pattern | Dec 2018 | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 |
| Promoters | 67.89 | 67.9 | 67.88 | 67.88 | 67.88 | 67.88 | 67.87 | 67.87 | 67.87 | 67.38 | 67.36 | 67.36 |
| FIIs | 18.16 | 18.21 | 17.76 | 17.64 | 17.48 | 17.43 | 17.63 | 18.08 | 18.52 | 19.77 | 20.59 | 21.35 |
| DIIs | 6.94 | 6.67 | 7.03 | 7.74 | 7.71 | 7.61 | 7.42 | 6.9 | 5.93 | 5.34 | 4.66 | 3.41 |
| Public | 7.01 | 7.23 | 7.34 | 6.74 | 6.93 | 7.07 | 7.08 | 7.15 | 7.67 | 7.51 | 7.38 | 7.87 |
Promoters have maintained their position in this stock with a whopping 67.36%.
But there is an interest shown by FIIs which is showcased by their action of increasing the stake and currently FIIs have 21.35%.
Now, let’s deep dive into the technicalities of Dabur share.
TECHNICAL ANALYSIS
During the earlier analysis we did highlight the formation of the cup and handle pattern.
Retest of price had occurred on the supply zone which was highlighted in the stock analysis.
Click here for previous analysis on Dabur share.
Breakout was achieved when we had done the analysis of this company.
Dabur share did achieve its target of ₹ 643 and rallied till ₹ 658 showcasing a target achievement of 12%.
DISCLAIMER: Click here for more information.