DOCSLIB.ORG

Going Aggressive in Hair Oils Dabur India Has Stepped up Its Aggression in the Indian Hair Oils CMP : Rs 318 Potential Upside : 2% Segment

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Going Aggressive in Hair Oils Dabur India Has Stepped up Its Aggression in the Indian Hair Oils CMP : Rs 318 Potential Upside : 2% Segment 25 OCT 2017 Company Update DABUR INDIA HOLD FMCG Target Price: Rs 325 Going aggressive in hair oils Dabur India has stepped up its aggression in the Indian hair oils CMP : Rs 318 Potential Upside : 2% segment. Recent advertisements show Dabur offering its coconut light hair oil at ~35% discount to similar offering by category leader Marico. Its coconut hair oil is also at 20% discount to Marico’s offering. MARKET DATA As hair oil is in a structural slowdown, Dabur seeks to draw consumers No. of Shares : 1,762 mn Free Float : 32% in this high-loyalty category by disruptive pricing. While its bid to eat Market Cap : Rs 560 bn market share in the coconut oil category from Marico has met with 52-week High / Low : Rs 324 / Rs 259 limited success in the past, this time pricing discount is too steep and Avg. Daily vol. (6mth) : 1.6 mn shares hence would be interesting to see consumer and Marico’s reaction. Bloomberg Code : DABUR IB Equity Promoters Holding : 68% Maintain HOLD with TP of Rs 325 on 35x forward P/E. We estimate FII / DII : 18% / 8% consolidated sales and EPS CAGR of 8% and 9% over FY17-19E with OPM stable at 19.8%. Valuation at 36x FY19 P/E looks fair. Fight for market share: Marico ate into share of Dabur’s forte, Amla hair oil, by offering its product at a discount. Marico’s Nihar Shanti Amla hair oil (Amla hair oil offering) increased its value market share from 9% to 37% over FY10 to now at the cost of Dabur’s Amla oil whose share eroded from ~80% to ~55% over this period. In volume terms, Marico (at ~40%) has overtaken Dabur. In May 2016, Dabur tried to cut into Marico’s forte, coconut hair oil, by offering Dabur Anmol Gold at ~7-10% discount to Marico’s Parachute. However, Dabur was not much successful. This time around, Dabur has priced its coconut light hair oil at 35% discount to Marico’s Parachute Coconut Hair Oil Jasmine. Our view: Hair oil category is in a structural slowdown. As per Nielsen, hair oil category volume has grown at sluggish 2.8% CAGR over FY10-16 with no volume growth over FY12-16. To drive growth, companies have not only stepped up new product launches in existing categories but have also entered into new categories. Price disruption is a key tool to switch consumers in this high-loyalty category. Around 20% discount in coconut oil and ~35% discount in coconut light hair oil by Dabur is quite aggressive. Financial summary (Consolidated) Key drivers Y/E March FY16 FY17 FY18E FY19E (%) FY17 FY18E FY19E Sales (Rs mn) 84,028 75,922 79,108 88,692 Dom sales growth (1.0) 7.2 11.0 Adj PAT (Rs mn) 12,500 12,768 13,642 15,329 Intl sales growth (4.9) (3.0) 15.0 Con. EPS* (Rs) - - 7.9 9.1 Gross margin (consol) 50.8 50.8 50.9 EPS (Rs) 7.1 7.2 7.7 8.7 EBITDA margin (consol) 19.9 19.6 19.8 Change YOY (%) 16.7 2.0 6.8 12.4 P/E (x) 44.7 43.8 41.0 36.5 Price performance RoE (%) 33.2 28.3 26.0 25.1 120 Sensex Dabur India RoCE (%) 33.9 30.4 29.3 29.9 110 EV/E (x) 35.4 35.4 34.0 29.6 100 DPS (Rs) 2.2 2.2 2.6 3.0 90 Source: *Consensus broker estimates, Company, Axis Capital 80 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 25 OCT 2017 Company Update DABUR INDIA FMCG Disruptive pricing to gain share in light hair oil To gain share in light hair oil segment, Dabur India is looking to drive its Dabur Anmol Coconut Oil Jasmine through disruptive pricing – at 35% discount to the competition. The product launched in January 2017 is currently targeting states in western India like Maharashtra, Gujarat and parts of Madhya Pradesh. The product will be taken to northern India in the next phase and, then across India. As the segment is less commoditized, Dabur will be maintaining disruptive product pricing. Last year, when it launched price war in coconut oil through Dabur Anmol, it gained 100-150 bps market share in the category (current share ~5% with Vatika and Anmol brands). Dabur’s aggressive price cuts in light hair oil (Oct-17) Dabur highlighting its product is available at a discount of 35% to product offering from category leader Marico Keep a note of product formulation: Product formulation for Parachute Advanced Jasmine comprises of ~80% LLP and 20% coconut oil, while that for Dabur Anmol Coconut Oil Jasmine has 86% LLP and 10% coconut oil Source: Media, Axis Capital 02 25 OCT 2017 Company Update DABUR INDIA FMCG Dabur cuts coconut oil price In May 2016, Dabur offered Dabur Anmol Coconut oil at 7-10% discount to Marico’s Parachute (the discounting has widened to ~20% since). Dabur attacked Marico with price cuts in coconut hair oil (May-16) Dabur highlights its product is available at 7-10% discount to product from category leader Marico Source: Media, Axis Capital 03 25 OCT 2017 Company Update DABUR INDIA FMCG Marico goes aggressive in Amla hair oil category Marico cuts Amla hair oil price (Sep-14) English translation of the ad: “ Nihar Shanti Amla is better than Dabur Amla. It also makes your hair beautiful. Nihar Shanti Amla has 500% higher Vitamin E than Dabur Amla and costs 30% lower. So when do you plan to change your oil? “ Pricing of key Amla oil brands of 200ml pack: Dabur Amla – Rs 84 Bajaj Brahmi Amla – Rs 84 Shanti Amla − Rs 56 ^ ^ (Standardized for 200ml based on pricing of 175ml pack) Source: Media, Axis Capital Amla based hair oil pricing (Sep-17) Offering Company Weight Price (Rs) Formulation Dabur Amla Hair Oil Dabur 180 ml 84 Amla 58% LLP 40% Dabur Amla Sarso Hair Oil Dabur 175 ml 47 Mustard and Amla extract 40%, LLP 58% Nihar Shanti Amla Marico 175 ml 47 Amla Seed Oil 35% LLP 64% Patanjali Kesh kanti Amla Hair Oil Patanjali 100 ml 40 NA Bajaj Brahmi Amla Hair Oil Bajaj Corp 200 ml 84 LLP with Brahmi and Amla 61.5%, Vegetable oil 37.15% Source: Company, Axis Capital 04 25 OCT 2017 Company Update DABUR INDIA FMCG Hair oil category Hair oil category size (Rs mn) Hair Care Rs 196 bn Coconut Oil Hair Oil Rs 32.8 bn Rs 66.5 bn Amla Based Oils Light Hair Oils VACNO Ayurvedic/ Herbal Cooling Hair Oils 45,065 Tn 33,989 Tn 29,292 Tn 7,730 Tn 19,013 Tn (1%) Rs 15.7 bn Rs 16.9 bn Rs 11.2 bn Rs 7.4 bn Rs 9.6 bn Source: Bloomberg, Axis Capital Valuations 1-year fwd. PE on consensus EPS PE (x) 10 yr median 40 35 30 25 20 15 10 Oct-06 Oct-07 Oct-08 Oct-11 Oct-12 Oct-15 Oct-16 Oct-17 Oct-09 Oct-10 Oct-13 Oct-14 Source: Bloomberg, Axis Capital 05 25 OCT 2017 Company Update DABUR INDIA FMCG Financial summary (Consolidated) Profit & loss (Rs mn) Cash flow (Rs mn) Y/E March FY16 FY17 FY18E FY19E Y/E March FY16 FY17 FY18E FY19E Net sales 84,028 75,922 79,108 88,692 Profit before tax 15,546 16,103 17,149 19,345 Other operating income 181 214 134 149 Depreciation & Amortisation 1,338 1,429 1,620 1,709 Total operating income 84,209 76,136 79,242 88,840 Chg in working capital 1,078 156 (1,072) (551) Cost of goods sold (37,976) (37,554) (39,049) (43,676) Cash flow from operations 13,134 10,513 10,631 12,935 Gross profit 46,233 38,582 40,193 45,164 Capital expenditure (2,338) (598) (3,079) (2,000) Gross margin (%) 55.0 50.8 50.8 50.9 Cash flow from investing (7,869) (5,161) 3,330 41 Total operating expenses (31,008) (23,493) (24,663) (27,561) Equity raised/ (repaid) 3 2 - - EBITDA 15,225 15,090 15,529 17,603 Debt raised/ (repaid) (1,566) 1,073 (6,465) - EBITDA margin (%) 18.1 19.9 19.6 19.8 Dividend paid (4,764) (4,770) (5,516) (6,364) Depreciation (1,338) (1,429) (1,620) (1,709) Cash flow from financing (5,821) (4,507) (12,018) (6,358) EBIT 13,888 13,661 13,910 15,894 Net chg in cash (556) 844 1,943 6,619 Net interest (480) (540) (354) (139) Other income 2,138 2,982 3,594 3,589 Key ratios Profit before tax 15,546 16,103 17,149 19,345 Y/E March FY16 FY17 FY18E FY19E Total taxation (3,018) (3,303) (3,473) (3,979) OPERATIONAL Tax rate (%) 19.4 20.5 20.2 20.6 FDEPS (Rs) 7.1 7.2 7.7 8.7 Profit after tax 12,528 12,800 13,677 15,367 CEPS (Rs) 7.9 8.1 8.7 9.7 Minorities (27) (31) (34) (38) DPS (Rs) 2.2 2.2 2.6 3.0 Profit/ Loss associate co(s) - - - - Dividend payout ratio (%) 31.6 31.0 33.6 34.5 Adjusted net profit 12,500 12,768 13,642 15,329 GROWTH Adj. PAT margin (%) 14.9 16.8 17.2 17.3 Net sales (%) 8.1 (9.6) 4.2 12.1 Net non-recurring items 27 1 - - EBITDA (%) 15.3 (0.9) 2.9 13.4 Reported net profit 12,527 12,770 13,642 15,329 Adj net profit (%) 16.9 2.1 6.8 12.4 FDEPS (%) 16.7 2.0 6.8 12.4 Balance sheet (Rs mn) PERFORMANCE Y/E March FY16 FY17 FY18E FY19E RoE (%) 33.2 28.3 26.0 25.1 Paid-up capital 1,759 1,762 1,762 1,762 RoCE (%) 33.9 30.4 29.3 29.9 Reserves & surplus 39,947 46,712 54,882 63,891 EFFICIENCY Net worth 41,706 48,474 56,643 65,652 Asset turnover (x) 3.8 3.5 3.4 3.5 Borrowing 7,922 9,115 2,650 2,650 Sales/ total assets (x) 1.3 1.0 1.0 1.0 Other non-current liabilities 882 1,080 983 983 Working capital/ sales (x) - 0.1 - 0.1 Total liabilities 50,727 58,917 60,576 69,585 Receivable days 35.1 31.3 35.8 37.2 Gross fixed assets 25,538 28,427 31,727 33,727 Inventory days 58.0 66.2 71.9 74.0 Less: Depreciation (8,258) (8,843) (10,463) (12,171) Payable days 70.4 77.9 80.6 82.0 Net fixed assets 17,280 19,584 21,264 21,556 FINANCIAL STABILITY Add: Capital WIP 448 421 200 200 Total debt/ equity (x) 0.2 0.2 0.1 - Total fixed assets 17,728 20,005 21,464 21,756 Net debt/ equity (x) (0.5) (0.6) (0.6) (0.6) Total Investment 26,433 32,525 29,757 30,757 Current ratio (x) 1.4 1.3 1.5 1.8 Inventory 10,965 11,067 12,553 14,441 Interest cover (x) 28.9 25.3 39.3 114.8 Debtors 8,092 6,504 7,755 9,031 VALUATION Cash & bank 2,198 3,048 4,992 11,610 PE (x) 44.7 43.8 41.0 36.5 Loans & advances 3,586 3,820 3,772 4,320 EV/ EBITDA (x) 35.4 35.4 34.0 29.6 Current liabilities 18,596 18,393 20,093 22,744 EV/ Net sales (x) 6.4 7.0 6.7 5.9 Net current assets 6,566 6,387 9,355 17,072 PB (x) 13.4 11.5 9.9 8.5 Other non-current assets - - - - Dividend yield (%) 0.7 0.7 0.8 0.9 Total assets 50,727 58,917 60,576 69,585 Free cash flow yield (%) - - - - Source: Company, Axis Capital Source: Company, Axis Capital 06 25 OCT 2017 Company Update DABUR INDIA FMCG Disclosures: The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Load more

Recommended publications
  • Avenue Supermarts Limited AVEU.BO, DMART in Value Retailer at Premium Multiples; Initiate with Price: Rs664.40 Neutral Price Target: Rs635.00
    Completed 07 Apr 2017 04:07 AM HKT Disseminated 07 Apr 2017 04:44 AM HKT Asia Pacific Equity Research 07 April 2017 Initiation Neutral Avenue Supermarts Limited AVEU.BO, DMART IN Value Retailer at Premium Multiples; Initiate with Price: Rs664.40 Neutral Price Target: Rs635.00 We initiate on Avenue Supermarts (ASL) with a Neutral rating and Mar-18 price India target of Rs635. ASL (operates stores under D-Mart brand), with a strong Consumer, Retail, Media execution track record, is a quality play on the Indian F&G retail sector in our AC opinion, being the fastest-growing and most profitable retailer. We forecast Latika Chopra, CFA 27%/34% revenue/EPS CAGR over FY17-20. However, significant gains post the (91-22) 6157-3584 [email protected] listing (120% above the offer price) lead to current valuations of 55x/42x Bloomberg JPMA CHOPRA <GO> FY18E/19E P/E, which fairly reflect the long-term growth opportunity in our J.P. Morgan India Private Limited view. Any minor lapse near term (store opening, comps, and/or margins) and Ebru Sener Kurumlu substantial investments in E-Commerce (earnings dilutive) could strain valuation (852) 2800-8521 multiples. [email protected] Much to like here. Food retailing is about format and execution and in our J.P. Morgan Securities (Asia Pacific) Limited view ASL has been able to achieve this combination well. We like ASL’s execution capabilities, single format focus, best-in-class productivity metrics Price Performance (sales densities ~2-3x peers), prudent store expansion strategy and strong focus 650 on customer satisfaction partly aided by its ‘everyday low price’ positioning.
    [Show full text]
  • Consumer Goods Recovery in Discretionary and Urban Sales Led to Better Q3 Sector Update
    Consumer Goods Recovery in discretionary and urban sales led to better Q3 Sector Update Consumer goods companies’ Q3 performance was driven by sales recovery of Q3FY2021 Results Review discretionary categories (such as value-added hair oil and personal care products), sustained higher demand for healthcare and hygiene products, better traction to Sector: Consumer Goods new launches, and higher demand in rural markets coupled with improving demand in urban markets. General trade continues to grow strongly, e-commerce mix to Sector View: Positive overall revenue is improving due to higher sales and modern trade channel has witnessed sequential improvement due to recovery in urban sales. Most consumer goods companies under our coverage registered organic revenue growth of 6%-16%, driven by domestic volume growth of 7%-18% in Q3. Paint companies, including Asian Paints, registered strong volume growth of 30%, led by sustained high demand in tier III/IV towns and improving demand in metros and top cities due to receding scare of virus and improving construction and real estate activities. Overall, Sharekhan’s consumer goods universe registered revenue growth of ~14% in Q3FY2021, better than 9.1% growth achieved in Q2FY2021. Significant increase Our coverage universe in prices of palm oil, copra, other edible oils, and raw tea/coffee resulted in gross Companies CMP Reco. PT margin decline for companies such as HUL, Godrej Consumer Products (GCPL), (Rs) (Rs) Marico, and Tata Consumer Products (TCPL). However, lower ad spends and cost- Asian Paints 2,389 Buy 3,000 saving initiatives arrested the sharp decline of 80-100 bps in operating profit margins (OPM) for some companies.
    [Show full text]
  • Management Discussion and Analysis
    Marico Limited Integrated Report 2018-19 Management Discussion and Analysis 7KLVGLVFXVVLRQFRYHUVWKHƬQDQFLDOUHVXOWVDQGRWKHU 7KHJRYHUQPHQWIHOOPDUJLQDOO\VKRUWRILWVƬVFDOGHƬFLW GHYHORSPHQWVIRUWKH\HDUHQGHG0DUFKLQUHVSHFW WDUJHWIRU)<WKHGHƬFLWƬQDOO\HTXDOLQJRI*'3 RI0DULFR&RQVROLGDWHGFRPSULVLQJLWVGRPHVWLFDQG FRPSDUHGWRWDUJHW7KHFHQWUDOJRYHUQPHQWKDVSXW LQWHUQDWLRQDOEXVLQHVV7KH&RQVROLGDWHGHQWLW\KDVEHHQ ƬVFDOFRQVROLGDWLRQRQKROGLQ)<E\WDUJHWLQJDGHƬFLW UHIHUUHGWRDVo0DULFRpRUo*URXSpRUo&RPSDQ\pLQ HTXDOWRRI*'3FORVHWRWKH)<RXWFRPHDQGKLJKHU WKLVGLVFXVVLRQ WKDQWKHHDUOLHUWDUJHWRIRI*'3 6RPHVWDWHPHQWVLQWKLVGLVFXVVLRQGHVFULELQJSURMHFWLRQV 7KH,QGLDQUXSHHGHSUHFLDWHGE\DJDLQVWWKH86GROODU HVWLPDWHVH[SHFWDWLRQVRURXWORRNPD\EHIRUZDUG UHƮHFWLQJWKHZLGHQLQJFXUUHQWDFFRXQWGHƬFLWDQGWHSLG ORRNLQJ$FWXDOUHVXOWVPD\KRZHYHUGLƪHUPDWHULDOO\ IRUHLJQLQYHVWPHQWƮRZV,WGHSUHFLDWHGE\DERXWLQ IURPWKRVHVWDWHGRQDFFRXQWRIYDULRXVIDFWRUVVXFKDV UHDOHƪHFWLYHWHUPV)RUH[UHVHUYHKROGLQJVGHFOLQHGE\ FKDQJHVLQJRYHUQPHQWUHJXODWLRQVWD[UHJLPHVHFRQRPLF |%LOOLRQWR%LOOLRQLQ)< GHYHORSPHQWVH[FKDQJHUDWHDQGLQWHUHVWUDWHPRYHPHQWV +HDGOLQHUHWDLOLQƮDWLRQDYHUDJHGWKHORZHVWVLQFHD DPRQJRWKHUPDFURHFRQRPLFIDFWRUVFRPSHWLWLYH QHZPHWULFZDVLQWURGXFHGLQ0XFKRIWKHGHFOLQHFDQ HQYLURQPHQWSURGXFWGHPDQGDQGVXSSO\FRQVWUDLQWVZLWKLQ EHH[SODLQHGE\PXWHGIRRGSULFHVZKLFKRFFXS\RIWKH ,QGLDDQGWKHFRXQWULHVZLWKLQZKLFKWKH*URXSFRQGXFWVLWV FRQVXPHUSULFHEDVNHWDVWKHLUDYHUDJHDQQXDOLQFUHDVHLQ EXVLQHVV )<ZDVRQO\%\FRQWUDVWFRUHLQƮDWLRQUHPDLQHG HOHYDWHGDWRQSULFHLQFUHDVHVIRUKRXVLQJHGXFDWLRQ Update on Macro Economic DQGUHFUHDWLRQVHUYLFHVDQGKHDOWKFDUH)XHOLQƮDWLRQDOVR
    [Show full text]
  • Management Discussion & Analysis
    MANAGEMENT DISCUSSION Marico’s portfolio of products, has, over the services that are safe and scientific. The current AND ANALYSIS years, created enduring value for its consumers. In structure of the skin care services industry is the process, it has consolidated its presence in fragmented with local brands catering to local In line with international practice, Marico has Skin Care, Oral Care, Health and Hygiene the market. In all its key categories of coconut needs. There are very few corporate service been reporting consolidated results taking into Products, Hair Care, Coconut Oil, Refined Edible oils, hair oils, anti-lice treatment, fabric care and providers. Marico’s Kaya Skin Clinics attempt to fill account the results of its subsidiaries. This Oils, Foods and Beverages, Dairy Products, premium refined edible oils, Marico has built this need gap with US FDA approved cosmetic Discussion therefore covers the financial results etc. The FMCG industry is one of the largest significant market shares. During FY04, Marico dermatological procedures that enhance the and other developments during April ’03 - March ’04 in India, with an annual estimated turnover of has kept pace with the momentum of growth quality, look and feel of Indian skin. (FY04) in respect of Marico Consolidated - Marico Rs. 480,000 million. achieved in the past couple of years, with Industries Limited together with its subsidiaries double-digit growth in topline and bottomline. OPPORTUNITIES Marico Bangladesh Limited (MBL), MBL Industries MARICO IS COMMITTED TO AND THREATS Limited (MBLIL), Kaya Skin Care Limited (KSCL) IMPROVING THE QUALITY OF Marico’s presence overseas (comprising Your Company continuously seeks new and its joint venture, Sundari LLC (Sundari) and PEOPLE’S LIVES THROUGH exports from India and local operations in a foreign opportunities in expanding its current portfolio of Sundari Spa LLC.
    [Show full text]
  • Stewart Investors Global Emerging Markets Sustainability Leaders Fund (DST)
    Stewart Investors Global Emerging Markets Sustainability Leaders Fund (DST) Quarterly Investment Report 1 April - 30 June 2021 Q 2 Contents Portfolio Performance 3 Portfolio Allocation and Stock Holdings 4 Largest Stock Holdings 5 Market Capitalisation Allocation 5 Significant Transactions 6 Contribution Analysis 6 Performance Analysis 7 Sector Performance 7 Full Portfolio Listing 8 Important Information 9 STEWART INVESTORS GLOBAL EMERGING MARKETS SUSTAINABILITY LEADERS FUND (DST) - QUARTERLY 2 INVESTMENT REPORT 30 JUNE 2021 Portfolio Performance 30 June 2021 Fund Details Investment Objective Fund Managers: Jack Nelson/David Gait The fund's investment objective is to achieve long-term capital growth by investing US$263.3 in large and mid-capitalization equities in emerging economies, including those Fund Size: companies listed on developed market exchanges whose activities predominantly take place in emerging market countries. Number of Holdings: 45 Cumulative Performance to June 30 2021 Since 10 7 5 3 2 1 6 3 % Change: Inception* Years Years Years Years Years Year Months Months Portfolio Return (Net) 61.9 - - - - - 40.4 5.9 7.1 Benchmark Return ** 67.1 - - - - - 41.4 7.6 5.1 Annualised Performance to 30 June 2021 Since Inception 31 Mar 2020 10 yrs 5 yrs 3 yrs Portfolio Return (Net) 47.1 - - - Benchmark Return 50.8 - - - * The inception date for performance measurement purposes is 31 March 2020. Returns are cumulative, net of fees and gross of tax, and denominated in USD. ** The benchmark for the Stewart Investors Global Emerging Markets Sustainability Leaders Fund (DST) is the MSCI Emerging Markets Index and is calculated gross of tax. Please note that past performance is not a reliable indicator of future returns.
    [Show full text]
  • ICICI Securities – Retail Equity Research Result Update Marico
    Marico (MARLIM) CMP: | 546 Target: | 630 (15%) Target Period: 12 months BUY August 1, 2021 Saffola growth momentum continues… About the stock: Marico is one of the major FMCG companies present in hair oil, edible oil, foods & personal care segment. Major brands include Parachute, Saffola, Nihar, Hair & Care, Set Wet, Livon and Beardo. Particulars The company has an overall distribution network of more than 5 million Particulars (| crore) Amount outlets and direct reach of ~1 million outlets. Through its stockist network, Market Capitalization 70,503.0 it reaches 58000 villages Total Debt (FY21) 340.0 Cash and Investments (FY21) 1,572.0 Update Result With the high gross margins of ~47%, Marico is able to spend 10% of its EV 69,271.0 sales for advertisements to support new categories & products 52 week H/L (|) 552 / 333 Equity capital 129.0 Face value (|) 1.0 Q1FY22 Results: Marico reported robust revenue growth in Q1FY22 results. Shareholding pattern Sales were up 31.2% YoY with strong volume recovery and price hikes (in %) Sep-20 Dec-20 Mar-21 Jun-21 EBITDA was at | 481 crore, up 3.1% YoY, with margins at 19% Promoter 59.6 59.6 59.6 59.6 FII 23.7 24.2 24.0 25.0 Consequent PAT was at | 365 crore (down 5.3% YoY) DII 10.4 10.2 10.2 9.7 Others 6.3 6.0 6.2 5.7 What should investors do? Marico’s share price has given 84% return in the last five years (from | 297 in July 2016 to | 547 in July 2021).
    [Show full text]
  • MARKET LENS 14933 Intraday Pick MARICO Resistance 15106 Intraday Pick ONGC 15182 Intraday Pick TCS
    Institutional Equity Research NIFTY 15030 IN FOCUS May 20 2021 Support 14982 Stock in Focus WIPRO MARKET LENS 14933 Intraday Pick MARICO Resistance 15106 Intraday Pick ONGC 15182 Intraday Pick TCS EQUITY INDICES Indices Absolute Change Percentage Change Domestic Last Trade Change 1-D 1-Mth YTD BSE Sensex 49,903 (290.7) (0.6%) 4.6% 4.5% CNX Nifty 15,030 (78.0) (0.5%) 5.1% 7.5% S&P CNX 500 12,809 (30.1) (0.2%) 6.3% 11.2% SENSEX 50 15,740 (80.3) (0.5%) 5.2% 7.5% International Last Trade Change 1-D 1-Mth YTD DJIA 33,896 (164.6) (0.5%) (0.7%) 10.8% NASDAQ 13,300 (3.9) (0.0%) (4.7%) 3.2% NIKKEI 28,078 33.6 0.1% (1.6%) 2.2% HANGSENG 28,451 (138.0) (0.5%) (0.6%) 4.4% ADRs / GDRs Last Trade Change 1-D 1-Mth YTD Dr. Reddy’s Lab (ADR) 72.2 0.5 0.6% 6.4% 1.3% STOCK IN FOCUS Tata Motors (ADR) 20.9 (1.1) (4.8%) 6.2% 65.5% f We expect Wipro’s revenue growth to accelerate over FY21-24E Infosys (ADR) 18.4 0.2 1.0% 1.9% 8.8% driven by: (1) step-up in large deal wins; (2) enhanced focused on ICICI Bank (ADR) 17.2 0.1 0.4% 17.3% 16.0% large clients; (3) concentrated focus on chosen verticals/industries; HDFC Bank (ADR) 73.6 (0.4) (0.6%) 7.4% 1.8% and (4) simplified operating structure post restructuring.
    [Show full text]
  • MARICO Strong Performance; Re-Rating Likely
    RESULT UPDATE MARICO Strong performance; re-rating likely India Equity Research| Consumer Goods EDELWEISS 4D RATINGS Marico’s Q4FY14 sales were in line with our estimate, but PAT surpassed it. Key positives were: (i) strong 10% YoY volume surge in Parachute (2% Absolute Rating BUY in Q3FY14) as it captured unorganised players’ pie under inflationary Rating Relative to Sector Outperformer conditions and better pricing strategy; (ii) robust 11% YoY (9% in Q3FY14) Risk Rating Relative to Sector Medium Sector Relative to Market Underweight volume surge in Saffola edible oil; (iii) 168bps YoY EBITDA margin expansion despite 522bps YoY fall in gross margin aided by 387bps YoY decline in other expenditure as strong sales and volume growth brought MARKET DATA (R: MRCO.BO, B: MRCO IN) in operating leverage; and (iv) 22% YoY growth in Bangladesh. Mere 5% CMP : INR 204 volume growth in value-added hair oil (on high base of 25%) and 24% YoY Target Price : INR 264 sales decline in South East Asia due to sluggish demand in Vietnam were 52-week range (INR) : 250 / 188 key negatives. Marico has underperformed peers Emami and Dabur ~21% Share in issue (mn) : 644.9 and~31%, respectively, and is likely to re-rate. Maintain ‘BUY’. M cap (INR bn/USD mn) : 132 / 2,187 Avg. Daily Vol.BSE/NSE(‘000) : 366.7 Confident of maintaining robust volume growth SHARE HOLDING PATTER N (%) While Parachute volumes jumped a robust 10% YoY, Saffola also clocked 11% YoY Current Q3FY14 Q2FY14 volume surge. Management is confident of achieving 8-10% YoY volume growth in Promoters * 59.7 59.7 59.7 Parachute and double digit in Saffola for couple of quarters.
    [Show full text]
  • Hindustan Unilever
    Equity Research INDIA December 7, 2020 BSE Sensex: 45080 Hindustan Unilever ADD ICICI Securities Limited Maintain is the author and Prioritising (volume) growth over (gross) margins is distributor of this report a significant trajectory shift Rs2,184 A potential change in stance at HUL in favour of volume growth, in our opinion, Company update could be a key driver for HUL stock’s outperformance in CY2021. We note that this Consumer Staples & strategy has already started playing out in tea (price hike lower than competition and commodity inflation), soaps (price hikes lower than competition despite steep Discretionary input inflation (palm prices up over 30% in 6M) and detergents. In India, a “growth market”, investors tend to (rightly) ignore short-term profit sacrifice, provided the Target price Rs2,400 trajectory of volume outperformance is clear (as it’s DCF-accretive). Nestlé stock’s 43% outperformance between Oct’18 – Sep’19 driven by volume growth-led Shareholding pattern valuation rerating, despite weak earnings, is a case in point. Mar Jun Sep ‘20 ‘20 ‘20 We are amending our FMCG portfolio strategy recommendation of Godrej, Marico, Promoters 61.9 61.9 61.9 Institutional Dabur, Tata Consumer over HUL (post HUL’s 26% underperformance (versus investors 18.4 23.2 25.4 MFs and others 2.6 4.4 4.0 Nifty) over last 6 months). ADD retained. Banks, FI’s, HUL’s comment in Q2FY21 call: Insurance co 3.7 3.8 3.8 FIIs 12.1 15.0 17.6 Others 19.7 14.9 12.7 “I think the right thing for us to do is to focus on competitive volume-led growth.
    [Show full text]
  • Corporate Governance Scores S&P BSE 100 Companies
    Corporate Governance Scores S&P BSE 100 companies Technical Partner Supported by the Government of Japan January 2018 TABLE OF CONTENTS Foreword 2 1 Introduction 4 2 SENSEX Trends 6 3 S&P BSE 100 Findings 8 4 Conclusion 12 5 Annexures 13 6 1 1. FOREWORD Vladislava Ryabota Regional Lead for Corporate Governance in South Asia, IFC Welcome to this second report on the Indian Corporate Governance Scorecard, developed jointly by the BSE, IFC and Institutional Investor Advisory Services (IiAS), with the financial support of the Government of Japan. The goal of a scorecard is to provide a fair assessment of corporate governance practices at the corporate level. This, in return, gives investors, regulators and stakeholders key information to help them in their decisions with regards to such companies. Since we started this journey in India, with our first scorecard issued in December 2016, a lot of dynamic changes have been set in motion. For instance, the scorecard of 2016 scored 30 companies, and now we have a 100 in this year’s edition. We were also happy to notice that several best practice requirements, covered by the scoring methodology, have been recommended by the Kotak Committee, formed in 2017 at the initiative of the Securities and Exchange Board of India. Changes have also taken place at the regulatory level to incite investors to take a more active role at Annual General Assemblies and vote in order to bring positive changes in the practices of their investee companies. All these changes form part of an overall dynamic aimed at helping the private sector raise its visibility in India and throughout the world and IFC is proud to be a solid partner and actor to this initiative.
    [Show full text]
  • Tata Global Beveragesfebruary 05, 2020
    TataTAT Consumer Products (TATGLO) CMP: | 629 Target: | 725 (15%) Target Period: 12 months BUY May 10, 2021 Elevated tea prices curbs margins; growth story intact Tata Consumer Product (TCPL) reported a mixed set of numbers with splendid growth in tea, salt & pulses categories. Revenue grew 26.3% led by robust 59.6% growth in India beverage (tea, coffee & Nourisco) segment & 22.4% growth in consumer foods business (salt, pulses). International Particulars beverages sales remained flat. Non branded business saw growth of 28.8%. Particulars (| crore) Amount With significant increase (~70%) in tea procurement prices, TCPL took Market Capitalization 57,963.3 staggered price hikes. However, price increases were insufficient to pass on Total Debt (FY21) 1,189.9 entire cost inflation. The sharp increase in Indian tea prices led to a 623 bps Cash and Investments (FY21) 3,398.0 Result Update Result contraction in gross margins. Though it was able to save 73 bps in employee EV 55,755.2 spends, 42 bps in marketing spends & 214 bps in overhead spends, it was 52 week H/L (|) 698 / 325 not enough offset the cost inflation. Operating profit de-grew 2.6% to | 300.2 Equity capital 92.2 Face value (|) 1.0 crore. Operating profit margins fell 290 bps to 9.9% in Q4FY21. The company incurred | 63.9 crore expense on account of loss from disposal of Key Highlights overseas business entity. Moreover, loss from associates was | 59 crore in Q4. With lower EBITDA margins & extraordinary expenses, PAT was at | 74 Second consecutive year of crop loss crore against loss of | 133 crore in the corresponding quarter.
    [Show full text]
  • STOXX BRIC 100 Last Updated: 01.08.2017
    STOXX BRIC 100 Last Updated: 01.08.2017 Rank Rank (PREVIOU ISIN Sedol RIC Int.Key Company Name Country Currency Component FF Mcap (BEUR) (FINAL) S) CNE1000002H1 B0LMTQ3 0939.HK CN0010 CHINA CONSTRUCTION BANK CORP H CN HKD Y 60.5 1 1 HK0941009539 6073556 0941.HK 607355 China Mobile Ltd. CN HKD Y 50.8 2 2 INE040A01026 B5Q3JZ5 HDBK.BO IN00CH HDFC Bank Ltd IN INR Y 47.7 3 3 INE002A01018 6099626 RELI.BO IN0027 Reliance Industries Ltd IN INR Y 44.4 4 6 CNE1000003G1 B1G1QD8 1398.HK CN0021 ICBC H CN HKD Y 41.3 5 4 INE001A01036 6171900 HDFC.BO IN00EJ Housing Development Finance Co IN INR Y 37.5 6 7 INE154A01025 B0JGGP5 ITC.BO IN007C ITC Ltd IN INR Y 34.6 7 5 BRITUBACNPR1 B037HR3 ITUB4.SA BR0035 ITAU UNIBANCO HOLDING SA -PREF BR BRL Y 32.7 8 9 CNE1000003X6 B01FLR7 2318.HK CN0076 PING AN INSUR GP CO. OF CN 'H' CN HKD Y 32.0 9 10 CNE1000001Z5 B154564 3988.HK CN0032 BANK OF CHINA 'H' CN HKD Y 31.8 10 8 INE009A01021 6205122 INFY.BO IN006B Infosys Ltd IN INR Y 30.6 11 11 INE090A01021 BSZ2BY7 ICBK.BO IN00BG ICICI Bank Ltd IN INR Y 25.6 12 12 BRBBDCACNPR8 B00FM53 BBDC4.SA BR0079 BANCO BRADESCO SA - PREF BR BRL Y 25.0 13 13 RU0009029540 4767981 SBER.MM EV023 SBERBANK RU RUB Y 23.9 14 14 BRABEVACNOR1 BG7ZWY7 ABEV3.SA BR01UX AMBEV BR BRL Y 23.0 15 15 CNE1000002L3 6718976 2628.HK CN0043 China Life Insurance Co 'H' CN HKD Y 20.0 16 16 INE018A01030 B0166K8 LART.BO IN00AF Larsen & Toubro Ltd IN INR Y 19.3 17 17 INE467B01029 B01NPJ1 TCS.BO IN005A Tata Consultancy Services Ltd IN INR Y 17.3 18 20 INE237A01028 6135661 KTKM.BO IN06Q1 Kotak Mah Bk IN INR Y 16.9 19 22 INE238A01034 BPFJHC7 AXBK.BO IN00MR AXIS BANK IN INR Y 16.4 20 21 CNE1000002Q2 6291819 0386.HK CN0098 China Petroleum & Chemical 'H' CN HKD Y 16.4 21 18 RU0007661625 B59L4L7 GAZP.MM EV019 GAZPROM RU RUB Y 16.2 22 19 BRVALEACNPA3 2257127 VALE5.SA BR10JM VALE S.A.
    [Show full text]