Industry profile: Personal Care and consumer staples are the sectors that hardly get the effect of any crisis. Because you can stop using tooth pests, Soap, the lifespan of the products is also high. Shelf life is also small. Investors see these companies as a secure place in crisis as maybe consumers may change habits about other things, but it isn’t effortless. This is a perfect sector for investors seeking steady growth, dividend, and low volatility. As 70% of Gross National Product is consumer spending, and the consumer staples sector is an important part, we can’t ignore it. Plus, this sector is hardly cyclical. If your income changes negatively, you can stop using Soap. Demand for Soap, tobacco, tooth pest and Dish wash will not change drastically; that is like a double-edged sword for the sector. You can not see growth in Financials or automobile companies, but you can hardly see them telling you that our revenue is also down.
Their profit per item is also tiny, but that factor is covered when the volume is high. That’s why Same Store Sales growth and volume growth are more important for this sector than Margin.
Company profile: Dabur India Limited is a fast-moving consumer goods (FMCG) company. The Company operates in various product categories, such as hair care, oral care, healthcare, skin care, home care, and foods. Its business units include Consumer Care Business, Foods Business, and International Business. The Consumer Care Business unit includes health supplements, digestives, over-the-counter (OTC) and ayurvedic ethical products, and home and personal care, which consists of hair care, oral care, skin care, and salon, and home care products. Its food business consists of fruit-based beverages and culinary pastes business. Its International Business unit offers a range of hair, skin, and oral care products in the Middle East, Africa, South Asia, Europe, and the Americas. The Company markets its products under brands including Dabur Chyawanprash, Dabur Honey, Dabur Baby, Vatika, Hajmola, Real, Fem, Dabur Amla, and Dabur red Tooth Paste, among others.
Shareholding pattern: BSE Data
Financials and Ratios : [table id=111 /]
Future prospectus: FMCG is a sector for which there is always demand. YES, there is one significant competition in the form of Patanjali. But India is sufficiently big, and it is impossible to say that tomorrow there will be no demand for a company like Dabur.
