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Dabur share price and Dabur India share price Review

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Details products of Dabur Stock (Dabur India Limited)

Dabur India Limited is a fast moving consumer goods (FMCG) company. Dabur India Ltd is an Indian multinational consumer goods company, founded by S. K. Burman and headquartered in Ghaziabad, Uttar Pradesh. It manufactures Ayurvedic medicine and natural consumer products, and is one of the largest fast-moving consumer goods (FMCG) companies in India. Dabur derives around 60% of its revenue from the consumer care business, 11% from the food business and remaining from the international business unit . 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 healthcare, which consists of 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 foods 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 Americas. The Company markets its products under the brands, including Dabur Chyawanprash, Dabur Honey, Dabur Baby, Vatika, Hajmola, Real, Fem, Dabur Amla and Dabur red Tooth Paste, among others.

History of Dabur India Limited (Dabur Share)

In the mid-1880s, Dr. S. K. Burman, an Ayurvedic practitioner in Kolkata, formulated Ayurvedic medicines for diseases like cholera, constipation and malaria. He went on to set up Dabur India Ltd in 1884 to mass-produce his Ayurvedic formulations. His son, C.L. Burman, set up Dabur’s first R&D unit. The current chairman, Dr. Anand Burman, and vice-chairman Amit Burman, are part of the fifth generation of the family. They were among the first business families in India to separate ownership from management, when they handed over the management of the company to professionals in 1998.

Dabur demerged its Pharma business in 2003 and hived it off into a separate company, Dabur Pharma Ltd. German company Fresenius SE bought a 73.27% equity share in Dabur Pharma in June 2008 at ₹76.50 a share.

Dabur International, a fully owned subsidiary of Dabur India formerly held shares in the UAE-based Weikfield International, which it sold in June 2012

How Strong Is Dabur India’s Balance Sheet?

Zooming in on the latest balance sheet data, we can see that Dabur India had liabilities of ₹29.3b due within 12 months and liabilities of ₹2.13b due beyond that. Offsetting these obligations, it had cash of ₹20.8b as well as receivables valued at ₹5.79b due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by ₹4.93b.

Having regard to Dabur India’s size, it seems that its liquid assets are well balanced with its total liabilities. So while it’s hard to imagine that the ₹923.9b company is struggling for cash, we still think it’s worth monitoring its balance sheet. While it does have liabilities worth noting, Dabur India also has more cash than debt, so we’re pretty confident it can manage its debt safely.

Also good is that Dabur India grew its EBIT at 12% over the last year, further increasing its ability to manage debt. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if Dabur India can strengthen its balance sheet over time. So if you want to see what the professionals think.

But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. While Dabur India has net cash on its balance sheet, it’s still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. During the last three years, Dabur India generated free cash flow amounting to a very robust 87% of its EBIT, more than we’d expect. That positions it well to pay down debt if desirable to do so.

How Much Debt Does Dabur India Carry?

As you can see below, Dabur India had ₹3.19b of debt, at March 2021, which is about the same as the year before. You can click the chart for greater detail. However, it does have ₹20.8b in cash offsetting this, leading to net cash of ₹17.6b.

Dabur India Shareholding pattern

Dabur has a total of 296,439 shareholders as of 31 March 2021 and the number of fully paid up equity shares held are 1,767,425,349

Shareholders (as on 31 March 2021) Shareholding
Promoter and promoter group 67.38%
Public 32.62%
Total 100.0%

The company’s top management includes Mr.Amit Burman, Mr.R C Bhargava, Mr.P N Vijay, Mr.Saket Burman, Mr.Aditya Burman, Mr.Ajit Mohan Sharan, Ms.Falguni Sanjay Nayar, Mr.Sanjay Kumar Bhattacharyya, Dr.Ajay Dua, Mr.Mohit Malhotra, Mr.P D Narang, Mr.Mohit Burman, Dr.S Narayan. Company has Walker Chandiok & Co. LLP as its auditors.

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