Reviews
In this edition, we have reviewed Dabur India and WPIL. We suggest our reader-investors to HOLD in Dabur India and WPIL
We had recommended Dabur in volume 33, issue no. 2, dated Dec 24,2018 - 6 Jan, 2019, under the Cover Story. The stock was trading at Rs.443.05 then and was recommended owing to strong financials, robust brand portfolio and promising future outlook.
Dabur India is the fourth largest FMCG company in the country, presently catering to the healthcare, personal care and food segments. The company’s product range includes healthcare products with brands like Hajmola, Pudin Hara, Dabur Chyawanprash, Glucose D,etc.,home care range consisting of products like Odonil, Odomos, Odopic, etc. Under personal care range, the company offers products like Vatika, Gulabri, Dabur Red toothpaste,etc. The company is also in the business of food and consumer care. On the consolidated financial front, the net sales for Q3FY19 was reported at Rs.2,199.21 crore, up by 11.84 per cent from Rs.1,966 crore reported in Q3FY18. The PBIDT was Rs.445.39 crore in Q3DFY19, up from Rs.403 crore in the same quarter of the previous year, thus showing an increase of 10.39 per cent YoY. The PAT in Q3FY19 has grown by 10.16 per cent to Rs.366.69 crore as compared to Rs.332.86 crore in the same quarter of the previous year.
On the annual front the net sales have remained stable at Rs.7,748.34 crore in FY18 as against Rs.7,701 crore in FY17. The PBIDT in FY18 was Rs.1,617.44 crore, up by 7.19 per cent from Rs.1,508.94 posted in FY17. The PAT was reported at Rs.1,357.50 in FY18 as compared to Rs.1,280.06 crore reported in FY17. Since our recommendation, the stock has fallen by around 8.94 per cent. However, we recommend a HOLD as we believe the stock would gain significant traction on the bourses in the coming quarters.
We had recommended WPIL in volume 33, issue no. 2, dated Dec 24, 2018 - 6 Jan, 2019, under the Cover Story. The stock was trading at Rs.858.30 then and was recommended owing to healthy financials, attractive valuations and strong order book.
WPIL Ltd is mainly engaged in the manufacture of vertical pumps, horizontal pumps, grey iron, castings and sluice valves. WPIL now offers system engineering and complete solutions to all kinds of water and waste water handling and transportation needs. The product range of the company includes vertical turbine pumps, vertical mixed flow and axial flow pumps,submersible pumps, horizontal centrifugal pumps, etc. The Company also has a project division, which undertakes water management contracts in these sectors.
On the financial front, the net sales were Rs.125 crore in Q3FY19, up by 10.29 per cent from Rs.113.77 crore in Q3FY18. The PBIDT in Q3Fy19 was Rs.29.07 crore, up by over 100 per cent from Rs.11.88 crore in Q3FY18. The PAT too climbed 192 per cent to Rs.17.32 crore in Q3FY19 versus Rs.5.92 crore in the same quarter of the previous year. On the annual front, in FY18, the net sales were up by 47 per cent to Rs.414.36 crore as against Rs.287.75 crore reported in FY17.
The PAT in FY18 was up by 134.52 per cent to Rs.47.56 crore as compared to Rs.20.28 crore in FY17. Since our recommendation, the stock has fallen by 4.46 per cent. We request our reader-investors to HOLD as we believe that post the earnings season, the stock could gain some momentum on the bourses.