Stock Analysis- Dabur India Limited

In the current volatile market when after every recovery a new low is attained, this stock is a defensive one and can give a risk free profit in long term as well in near term.

FUNDAMENTAL ANALYSIS:-
The company has a market cap of more than7,700 crs with a P/E of 24.20 and EPS of 3.74. After gaining a strong presence in its core segments like hair oil and health supplements, DIL has successfully added new businesses like foods, oral care (toothpaste), international business and shampoos over the past five years. DIL has entered the organized retail market by setting up retail stores based on the health and beauty platform. Till date, DIL has opened 7 'new U' stores and plans to add 5-6 new stores during FY09. The retail venture is expected to generate revenues of ~Rs400mn in FY09 and to break even by FY11. DIL plans to invest ~Rs2.5bn over the next two years. Besides a ~Rs1.2bn brownfield expansion in FY09, DIL also plans to set up ~Rs1.5bn greenfield plant in FY10 in the tax free zone, which will enable it to take advantage of MAT till 2020.
TECHNICAL ANALYSIS:-
With strong growth momentum across segments, it is expected DIL to register revenue CAGR of 16% and a PAT CAGR of 17.1% over FY08-10. Technically the stock is above its 30 dma and 50 dma and a strong rally could easily lift it above its 150 dma. Days BSE NSE
30 90.76 90.83
50 90.85 90.89
150 95.75 95.84
200 98.66 98.71
ADVICE TO INVESTORS:-
It is recommended for short-term investors the stock at the current levels and on declines to support of Rs 84-85 levels. Targets are as mentioned below.
TARGET:-
Based on above analysis targets estimated are
i) Short term – 100-103 Rs. for positional traders with stop loss of 82 Rs.
ii) Medium term – 125-135 Rs. for investors, Once it crosses 110Rs.and sustain there.
iii) Long Term –180-200 Rs. for investors.
Note: - All above views are mine and before investing investors should apply their con sense and do it at their own risk.
HAPPY INVESTING