MOCK STOCK REPORT

TOPIC : SCRIP ANALYSIS

Indian Economy:

Economy is expected to develop at 8.2 percent in 2011-12. Agriculture grew at 6.6 percent in 2010-11. Likely to nurture at 3.0 percent in 2011-12. Industry grew at 7.9 percent in 2010-11. Likely to nurture at 7.1 percent in 2011-12. Services grew at 9.4 percent in 2009-10. Likely to nurture at 10.0 percent in 2011-12. The expected growth rate of 8.2 percent, although inferior than the earlier year, must be treated as high and respectable, given the current world situation. The global economic and financial situation is not likely to improve according to the outlook. To keep the economy growing at 9 percent it is significant to boost fixed investment rates. Investment rates are expected at 36.4 percent in 2010-11 and 36.7 percent in 2011-12. Domestic savings rates as a ratio of GDP are likely at 33.8 percent in 2010-11 and 34.0 percent in 2011-12. The 2011 monsoon is anticipated to be in the range of 90 percent to 96 percent of Long Period Average. As a result, farm sector output is expected to grow at 3 percent. The revised series (2004/05) for Index of Industrial Production shows an output growth pattern that is fairly different from what the old series (1993/94) had indicated. The output growth was grossly underestimated by the old series in 2007-08 and overestimated in 2008-09 and 2009-10. The impact of the Global Financial Crisis on industrial output was much stronger than had been indicated by the old series. In 2010-11 the output growth was higher at 8.2 percent against 7.8 percent indicated by the old series. Current Account deficit is US$44.3 billion (2.6 percent of GDP) in 2010-11 and likely at US$54.0 billion (2.7 percent of GDP) in 2011-12. Merchandise trade deficit is US$130.5 billion or 7.59 percent of GDP in 2010-11 and projected at US$154.0 billion or 7.7 percent of GDP in 2011-12. Invisibles trade surplus is US$86.2 billion or 5.0 percent of the GDP in 2010-11 and projected at US$100.0 billion or 5.0 percent in 2011-12.

Capital flows registered at US$61.9 billion in 2010-11 and are projected at $72.0 billion in 2011-12. FDI inflows projected at US$35 billion in 2011-12 against the level of US$23.4 billion in 2010-11. FII inflows projected to be US$14 billion which is less than half that of the last years US$30.3 billion. Accumulation to reserves was US$15.2 billion in 2010-11 and is projected at US$18.0 billion in 2011-12. The headline inflation rate would continue to be at 9 percent in the month of JulyOctober 2011. There will be some relief starting from November and will decline to 6.5 percent in March 2012. Available food stocks are to be freely released. Significant role for fiscal policy to contain demand pressure. Need to ensure that fiscal deficit does not surpass the budgeted level. RBI will have to persist to follow a tight monetary policy till inflation shows definite signs of decline. Achieving fiscal targets set in 2011/12 budget estimates to present a significant challenge. Government to redouble efforts to collect larger revenue, resolve cases to reduce tax arrears. Minimize avoidable expenditures and initiate measures to increase revenues. Resolve issues with states and introduce Goods and Services Tax. Reforms in power sector distribution system to limit the liabilities of state governments.

FMCG Industry:

Despite a growth of only 11 per cent in Q2 FY 11 as against 12 per cent in the year-ago period, the Indian FMCG sector is expected to grow at 13 per cent in the current fiscal, a CII report on the FMCG sector said. "Though rising food inflation and high input costs have hurt the FMCG sector in the firsthalf of the fiscal, the industry is optimistic about its performance during the full year," CII Director General, Chandrajit Banerjee, said in a statement here today. The survey, covering around 30 FMCG products, said that Indias FMCG sector has registered a drop in growth at 11.4 per cent in Q1 FY 11 as against 12 per cent growth in the year-ago period. The performance further dropped in the second quarter at 11 per cent, due to high input costs.

However, the sector is optimistic to grow at 13 per cent during the fiscal as commodity prices are expected to ease on the back of a good monsoon. The on-going festive season would also boost sales, thus improving margins, the study added. Categories such as detergent powders, washing cakes, toothpowder, liquid soaps, shaving products and coconut oil are expected to grow from 10 to 20 per cent. Meanwhile, initiatives and strategies such as mergers and acquisitions, overseas expansion, innovations and launches with smaller packs to tap the vast rural market would also accelerate growth, the survey said. The survey has also identified some major challenges such as fake products, which amount to a loss of around Rs 2,700-crore to the exchequer. Rising input costs, increase in packaging cost and higher logistics cost due to fuel price increase are affecting the profit margins of FMCG companies. Pro-active Government measures such as early implementation of GST, strict monitoring and controlling of prices, enforcement of copyrights and better infrastructure facilities would boost the sectors growth, it said.

Sensex Movement:

Dabur India Ltd:

Established in 1884. Dabur India Limited is the fourth largest FMCG Company in India with interests in Health care, Personal care and Food products. The group comprises Dabur Finance, Dabur Nepal Pvt Ltd, Dabur Egypt Ltd, Dabur Overseas Ltd and Dabur International Ltd. The product portfolio of the company includes health care, food products, natural gums & allied chemicals, pharma, and veterinary products. Some of its leading brands are Daburamla, Dabur Chyawanprash, Vatika, Hajmola, Lal Dantmanjan, Pudinhara and the Real range of fruit juices.

Dabur has firmed up plans to restructure its sales and distribution structure and focus on its core businesses of fastmoving consumer good products and over-the-counter drugs. Under the restructured set-up, the company plans to increase direct coverage to gap outlets and gap towns where Dabur is not present. A roadmap is also being prepared to rationalise the stockists' network in different regions between various products and divisions.

Financial Performance: (in Cr.) Revenue Net Profit EPS Jun-11 848.17 91.10 0.52 Mar-11 825.58 128.54 0.74 FY10-11 3,287.67 471.43 2.71

Scrip ID : DABUR Group / Index : A / BSE100 Face value : 1.00 Scrip Code : 500096 Industry : Personal Product Stock Prices for Period on BSE ( 08-Aug-2011 to 07-Sep-2011 )

Date

Open Price

High Price

Low Price

Close Price

No. of Shares

No. of Trades

99.00 103.95 98.40 102.75 1,03,477 8/08/11 9/08/11 100.00 106.50 99.80 103.35 6,63,451 80,790 10/08/11 106.00 106.65 102.30 103.00 11/08/11 103.00 104.00 100.90 101.40 12/08/11 102.10 102.50 100.70 101.10 16/08/11 102.90 103.50 101.20 101.95 17/08/11 18/08/11 19/08/11 22/08/11 23/08/11 24/08/11 102.00 104.00 101.30 104.00 107.25 107.00 104.25 106.20 104.65 107.45 107.95 107.40 101.75 104.00 101.30 102.40 104.50 104.70 98,353 46,712 58,012

Total Turnover (Rs.) 1,475 1,05,21,375 1,428 6,84,43,585 960 84,14,711 1,027 1,00,25,564 585 763 47,35,059 59,26,197

103.75 73,670 104.90 1,00,518 103.80 68,955 106.75 82,738 105.35 81,899 106.10 1,24,866 88,108

945 75,94,902 1,403 1,05,90,163 878 71,40,036 1,120 87,52,391 1,147 86,69,851 772 1,33,10,413 975 94,43,715

25/08/11 107.50 108.00 106.20 107.05 26/08/11 29/08/11 30/08/11 2/09/11 5/09/11 6/09/11
7/09/11

107.00 109.00 110.50 111.00 111.00

108.90 110.50 110.95 113.60 111.90

106.40 108.65 108.65 110.00 107.65

107.65 93,834 109.25 69,467 110.50 59,019 112.05 1,43,486 108.10 1,81,574

1,073 1,01,17,550 1,016 76,27,153 971 64,71,789 1,771 1,60,99,627 869 1,98,24,707 1,207 1,14,13,353
1,234 1,34,52,127

107.75 108.80 106.15 106.65 1,06,684

108.00 108.00 105.60 107.05 1,25,824

* Spread (Rs.) H-L C-O 5.55 3.75 6.70 3.35 4.35 3.00 3.10 1.60 1.80 1.00 2.30 0.95 2.50 1.75 2.20 0.90 3.35 2.50 5.05 2.75 3.45 1.90 2.70 0.90 1.80 0.45 2.50 0.65 1.85 0.25 2.30 0.00 3.60 1.05 4.25 2.90 2.65 1.10
2.40 -0.95

Dabur India Ltd had declared Final dividend of Re. 0.65 per share having face value of Re. 1/each (i.e. 65%) on the equity shares of the company for the financial year 2010-11. Standalone unaudited results: The Company has posted a net profit of Rs. 911.00 million for the quarter ended June 30, 2011 as compared to Rs. 895.20 million for the quarter ended June 30, 2010. Total Income has increased from Rs. 7614.10 million for the quarter ended June 30, 2010 to Rs. 8626.70 million for the quarter ended June 30, 2011. Consolidated unaudited results: The Company has posted a net profit after minority interest of Rs. 1277.40 million for the quarter ended June 30, 2011 where as the same was at Rs. 1067.90 million for the quarter ended June 30, 2010. Total Income is Rs. 12276.70 million for the quarter ended June 30, 2011 where as the same was at Rs. 9312.70 million for the quarter ended June 30, 2010. Dabur India Ltd has granted 2,39,662 fresh Stock Options under Dabur Employees Stock Option Scheme 2000 to the eligible employees of the company Dabur India Ltd ratings reaffirmed by CRISIL for credit facilities of the Company. : Long Term Bank Facilities it is CRISIL AAA, for Short Term Bank and Short term Debt programme facilities it is CRISIL A1+. 09/08/11 Dabur India Ltd wholly owned subsidiary Dabur International Ltd has incorporated a new wholly owned subsidiary namely- Dabur Lanka (Pvt) Ltd. in Sri Lanka. Accordingly, Dabur Lanka (Pvt) Ltd. has become Company's step down subsidiary Company. Stiff competition and Hindustan Unilever Ltds efforts to regain volume growth and market share have affected Dabur. Amit Burman, Chairman, Lite Bite Foods awarded Restaurant Entrepreneur of theYear. Dabur enters Aroma products market with Odonil Occasions.

Colgate-Palmolive India

Colgate Palmolive India is a 51 per cent subsidiary of Colgate Palmolive Company, USA. It is the market leader in the Indian Oral Care market, with a 51 percent market share in the toothpaste segment, 48 per cent market share in the toothpowder market and a 30 per cent share in the toothbrush market. The company also has a presence in the premium toilet soap segment and in shaving products, which are sold under the Palmolive brand.Other well-known consumer brands include Charmis skin cream and Axion dish wash. The company's strategy is to focus on growing volumes by improving penetration through aggressive campaigning and consumer promotions. The company plans to launch new products in oral and personal care segments and is prepared to continue spending on advertising and marketing to gain market share. Margin gains are being targeted through efficient supply chain management and bringing down cost of operations.

Financial Performance: (in Cr.) Revenue Net Profit EPS Jun-11

629.37 100.44 7.39

Mar-11
601.22 114.06 8.39

FY10-11
2,296.86 402.58 29.60

Scrip ID : COLGATE Face value : 1.00

Group / Index : A / BSE200 Scrip Code : 500830

Industry : Personal Products Period ( 08-Aug-2011 to 07-Sep-2011 )

Date

Open Price
965.00 925.05 936.10 932.20 934.80 922.00 914.00

High Price
965.00 946.90 945.00 941.35 938.00 931.50 938.00

Low Price
936.10 905.10 930.10 927.10 918.50 904.05 913.00

Close Price
950.25 932.85 932.20 932.55 919.75 908.55 932.10

No. of No. of Shares Trades

16,233 8,779 10,678 4,463 6,279 4,243 21,979 981 597 592 314 516 404 1,518

Total Turnover (Rs.)

1,53,98,585 82,03,136 99,99,474 41,74,783 58,15,403 38,86,014 2,03,08,790

* Spread (Rs.) H-L C-O

28.90 -14.75 41.80 7.80 14.90 -3.90 14.25 0.35 19.50 -15.05 27.45 -13.45 25.00 18.10

8/08/11 9/08/11 10/08/11 11/08/11 12/08/11 16/08/11 17/08/11

944.90 926.25 929.80 18/08/11 937.00 925.00 904.00 918.30 19/08/11 920.00 954.90 918.00 950.80 22/08/11 918.00 962.00 944.20 950.90 23/08/11 954.00 953.00 925.05 929.55 24/08/11 950.00 975.75 930.00 964.10 25/08/11 930.00 975.00 940.00 944.80 26/08/11 950.00 959.80 942.00 945.60 29/08/11 954.80 960.00 946.50 954.20 30/08/11 955.00 982.85 952.00 979.55 2/09/11 964.00 5/09/11 978.00 1,009.00 971.20 1,004.55 6/09/11 993.20 1,021.00 993.20 1,000.05 7/09/11 1,000.50 1,057.00 995.10 1,037.55

9,727 13,839 9,833 14,820 4,350 21,219 14,383 5,381 10,043 14,553 31,480 8,822 39,324

584 689 800 408 356 1,451 777 377 772 859 1,577 549 2,274

90,64,308 1,26,71,955 92,49,636 1,40,98,830 40,78,020 2,03,03,316 1,37,87,095 51,09,218 95,92,450 1,41,80,337 3,15,66,118 88,70,895 4,07,60,669

18.65 -7.20 21.00 -1.70 36.90 32.80 17.80 -3.10 27.95 -20.45 45.75 34.10 35.00 -5.20 17.80 -9.20 13.50 -0.80 30.85 15.55 37.80 26.55 27.80 6.85 61.90 37.05

The Company has posted a net profit after tax of Rs 1004.40 million for the quarter ended June 30, 2011 where as the same was at Rs 1219.80 million for the quarter ended June 30, 2010. Total Income is Rs 6413.50 million for the quarter ended June 30, 2011 where as the same was at Rs 5551.10 million for the quarter ended June 30, 2010. Colgate Palmolive (India) Limited announced that the Board of Directors declared a first interim dividend of INR8 per equity share of INR1 (face value) for the financial year ending March 31, 2012. The said interim dividend will be paid on the paid-up equity share capital of INR13.60 crore (INR136 million) involving a total pay-out of INR126.40 crore (INR1.264 billion) [including dividend distribution tax].

Colgate's earnings per share grew 7.7% to $1.26 a share from $1.17 a share in the year-ago quarter. On August 15, 2011, Colgate paid a regular quarterly cash dividend of 58 cents per share on its common shares, to stockholders of record as of July 26, 2011. Since 1895, the company has regularly paid cash dividend to its common shareholders. Colgate-Palmolive Company announced that its Board of Directors authorized a new share repurchase program providing for the repurchase of up to 50 million common shares. Pursuant to the authorization, the Company currently expects to purchase 50 million common shares over the next two to three years. The shares may be purchased in the open-market or privately negotiated transactions. These strategies will enhance shareholders' return and lift the market value of the stock.

Recommendation
Buy/ Hold both stocks. Prices are expected to rise further more.