Dabur has outperformed in a tough environment as its brand building initiatives are beginning to pay dividends. Mohit Malhotra is focusing on (a) Scaling power brands (8 brands with 65% revenue mix) which have a large addressable opportunity, (b) Deeper rural penetration led by higher direct reach (targeting 55k/60k villages in FY20/21) and (c) Innovation of new products. We remain optimistic for Dabur and expect co will be opportunistic in the rural recovery. Dabur posted healthy 5.6% domestic volume growth (est 5%) despite weak consumer sentiments in rural India. Focused strategy on power brands, innovative launches and increase in rural reach is driving share gains. Rural growth outpaced urban by 400bps for Dabur (in contrast to industry). Oral care growth at 8.5% was much better than category growth and market leader (Colgate posted 4%). Health Supplements and Digestive also posted healthy 12% and 16% growth. Food remained muted due to category issue, will be keen to watch performance in upcoming season. Despite near term headwinds, we believe Dabur will outperform peers owing to (1) Focus on power brands, (2) Expanding addressable market, (3) Healthy growth in natural category, (4) Rising distribution reach and (5) Innovative launches. We value Dabur at 40x on Dec-21E EPS, arriving at a TP of Rs 510. Maintain BUY.