Dabur doing well, Zee out of radar for now

Once Zee is through with its debt related troubles, one can have a relook at the stock. Until then, it remains out of radar for most investors, says Mahantesh Sabarad, Head, Retail Research, SBICAP Securities.

What is your first take on Dabur numbers?
Dabur has done exceptionally well in terms of its results. In the first quarter, there was a surprise in terms of the numbers that they showed for chyawanprash. They have seen a substantial pickup for chyawanprash which is adding to the numbers that we are seeing.

The second quarter numbers show the momentum continuing in the healthcare segment riding the chyawanprash brand. Overall, the numbers are very good. It is not really surprising but the margin impact that has come in terms of expansion quarter on quarter tells us that they are enjoying the benefits of both volume as well as pricing and the earnings momentum remains quite strong.


How have you read into Zee Entertainment’s quarterly numbers? Is it a prudent buy at the current levels?
Zee is not a company that is under active coverage right now but it has its baggage of concerns related to promoters’ leverage. There is an element of leverage within the company and while that plays out, the stock is not likely to perform really well. It is out of radar for most investors, including retail investors given that the growth numbers are also quite weak. Once they are through with their debt related troubles, one can then have a relook. Until then, it remains out of radar for most investors.