Prabhudas Lilladhar has rated Dabur India as an outperformer at Rs 59. Dabur is expected to maintain a double-digit topline growth even under adverse overall consumer demand, notwithstanding a flat Q1FY02.
Lower Canteen Stores Department (CSD) sales of Dabur Amla as well as seasonality in several products led to the flat Q1FY02. Dabur's strong brand equity and reduced raw material costs will drive earnings growth in FY2002.
The research house expects Dabur's EPS to grow at 28.2 per cent in FY2002 and 18.1 per cent in FY2003, translating into respective price earnings ratio of 16.8x and 14.2x, and a PEG of 0.73.
More From This Section
First Global India Research has recommended a hold on Hindustan Petroleum Corporation (HPCL) at Rs 139.6. Recession only adds to the problems of companies like HPCL, whose growth is governed by GDP growth.
The company has maintained its margins at the operating as well as the net level. The stock has already come down significantly from its peak of Rs 180.The decline in, the stock was however on expected lines.
Khandwala Research has downgraded Gas Authority of India (GAIL) from strong buy to buy at Rs 55. Considering the downside risk to chemical prices for some more time coupled with the anticipated 40-75 per cent increase in natural gas prices, operating margins will be under pressure.