Dabur India hits record high ahead of Q2 earnings

The stock has gained nearly 10% in past one month compared to 5% rise in benchmark index and 1.4% rise in BSE FMCG index.

Shares of Dabur India is trading higher by 4% at Rs 183, also its record high on BSE, in otherwise subdued market, ahead of its second quarter earnings on Monday.

The stock of fast moving consumer goods (FMCG) company has outperformed the market by gaining nearly 10% in past one month compared to around 5% rise in benchmark index and 1.4% rise in BSE FMCG index.

The company is schedule to announce its July-September (Q2FY14) earnings on Monday, October 28. The board will also consider interim dividend on the equity shares of the company for the financial year 2013-14.

Analyst on an average expect 14% year on year (yoy) growth in consolidated net profit at Rs 231 crore and 13% yoy growth in net sales at Rs 1,722 crore for the recently concluded quarter.

“We expect domestic volume growth at 8?9% yoy on a base of 9% yoy (Q1FY14 saw 9% YoY volume growth). The rupee depreciation will impact margin in food. With some recovery in the Namaste business and good performance of Hobi business we expect the international business to grow at around 10% yoy,” says analyst at Edelweiss Securities in quarterly preview.

We expect 14.5% consolidated revenue growth led by volume growth of around 8-9% in the domestic business and recovery in Namaste. Expect standalone revenue growth at 12% yoy, says analyst at Bank of America Merrill Lynch.

Consolidated EBITDA margin can see improvement of 90bp led by sharp margin gains in International business. Expect consolidated net profit growth at 18.1% yoy, adds analyst.