Dear All,
Forwarding you the Flash Note on Dabur.
Flash Note: Dabur acquires 30 Plus, we maintain Accumulate with a TP of `115
The Deal: Dabur India entered into an agreement with Mumbai‐based Ajanta Pharma Limited to acquire Ajanta’s over‐the‐counter energizer brand ’30‐Plus’. Financial details pertaining to the deal are unknown though according to some news sources the deal is pegged at less than `50cr.
About 30 Plus: Launched in 1990 by Ajanta pharmaceuticals, 30‐Plus is a herbal energizer capsule that targets the thirty plus males. It became an instant hit among consumers in India as it was endorsed by Bollywood veterans like Jeetendra. The brand 30- Plus is one of the oldest and strongest brands in the herbal energizer health care category in India. 30- Plus has been Ajanta’s flagship brand once, which gave the company a national footprint.
Our take on the deal: According to a Euromonitor report, the size of herbal supplements category in India in 2010 was at ~`800cr which grew at 12% CAGR from 2005-2010. Dabur’s CHD contributed 7.5% to the sales and grew at 13% in FY2011. The key brands in this category are Pudin Hara, Honitus, Shilajit and Dashmularishta. We believe that the brand 30-Plus would add value to the bouquet of health centered products of Dabur and go with the company’s strategy “to build capacity on the OTC health care business.” The financial implication due to the deal on the company is negligible considering the assumed deal size.
If you have any further queries, feel free to call us on 022 39357600, Extn: 6865 or mail us at advisory@angelbroking.com
With best regards,
Fundamental Advisory Desk
Angel Broking
Akruti Star,6th Floor, Road No.7,MIDC, Andheri (E),Mumbai – 93.
Call : (91) (022) 39357600 Ext. 6864,6865
Website : www.angelbroking.com
Disclaimer: Ours is an advisory role. The final decision and consequences based on our information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.
No comments:
Post a Comment