Dabur India Ltd.
§ Bucking the general trend, the FMCG companies are likely to pull off a healthy performance for the quarter ended March 2009. Along with the growth in volumes, value growth will be the primary driver of revenues.
§ Dabur has launched three new variants of anti-dandruff shampoos under its premium hair care brand Vatika and has signed actress Preity Zinta as the brand ambassador for the Vatika shampoo range. Hair Care segment contributes about 85 % of the personal care business for Dabur and is eyeing a 10% share in the Rs-600 crore domestic anti-dandruff shampoo market.
§ With over 300-odd products and SKUs in the market, the company has channelised its sales network into three clear verticals of Foods, HPC and Healthcare. This will ensure that the sales force is more productive than in the past, as there will be greater focus and the company will be able to derive better bang from its promotions. This move is aimed at creating focus groups within its sales force and the sales personnel with the company’s stockists, to enable them to sell products more efficiently. This new sales strategy, will seek to empower its sales force and create greater bandwidth to beat any potential slowdown in the market.
§ At the current market price of Rs.95.15, stock is trading at 22.82x P/E and 10.15 P/BV and as per market estimates for FY10E at 18.12x P/E and 7.86 P/BV.
