For Q1’10, Dabur India Ltd (Dabur) posted a healthy top-line growth of 23% y-o-y to Rs7.4 billion led by robust 16% y-o-y growth in volumes across its key categories.
EBITDA grew by 30.3% y-o-y to Rs1.3 billion and margins by 93 bps to 16.5% due to softening of raw material prices.
We believe Dabur will witness robust revenue growth in medium-to-long term on the back of increasing traction in its portfolio mix and entry into new geographies.
However, owing to the weak near-term outlook due to dismal monsoon, and recent run-up in the stock prices, we maintain our HOLD rating on the stock.
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