Dabur India Ltd. share price target

We value Dabur at 50x FY23E EPS at a discount to its 3 year avg. PE of 53x given its market leadership in Ayurvedic category, rich legacy, fearlessness in NPD launches, healthy margins and operating cash flows. We initiate coverage with a BUY rating and TP of Rs. 610/share.

We initiate coverage on Dabur with a BUY for a price target of Rs.600 representing a potential appreciation of 22 % over the next 24 month from the CMP of Rs.490.

Quick Research Note

Dabur India Ltd (Dabur), a leading Indian FMCG company, is a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. The company operates through Health Supplements, Digestives, Shampoos, Hair...

The sanitisers & disinfectants space generated | 90 crore of sales in Q1 with several new products being launched. We believe the opportunity in immunity boosting products is more structural & leadership position in Chyawanprash & Honey is advantage for DIL. It gained market share in both segments by 600 bps & 300 bps, respectively, in Q1. Though growth rates in hygiene category may taper down in few quarters, the category is here to...

Dabur India earnings were below our estimates on all fronts as Covid-19 pandemic disrupted the business performance of the company. Profit for the quarter de-grew by 6.1%YoY/+21.0% QoQ to Rs 341 Cr during Q1FY21. Consolidated revenue stood at Rs 1,980 cr ,below our estimates Rs 2,209 registering a degrowth 12.9%YoY/+6.1%QoQ. Reported EBITDA de-grew by 9.0%YoY/+18.2%QoQ to Rs 416 Cr, below our estimate of Rs...

July sales up 5-6%, no trade inventory build-up, MT/CSD under pressure. We are increasing FY21/22/23 EPS estimates of Dabur India by 8%/5.7%/4.3% following sales PAT beat in 1Q mainly led by Rs1.4bn incremental sales from new launches in Sanitizers and Healthcare products. Dabur is currently riding on rising consumer demand for immunity boosters and hygiene products...

Sales from new launches are targeted to reach ~5% of total sales in 2 years (from Mr. Malhotra believes that currently Dabur is less efficient than peers on several operating costs. is likely to see growth compared to the weak outlook 2-3 quarters ago due to the companys focus on Naturals and Ayurveda in current Dabur has introduced Sanitize brand. In a highly encouraging move, Mr. Malhotra stated that they aim to match or surpass the best domestic peers on the technology and analytics front in the next April and first half of May was a setback due to supply chain issues given the lack of clarity on classification of essential/non-essential items, particularly in the case of Ayurvedic products.

We recommend a BUY on DABUR INDIA with a Target Price of Rs 504, an upside of 6% from CMP of Rs. 471 and Stop Loss Rs. 455.

Dabur India Q4FY20 earnings were below our projections with a miss in Revenue, EBITDA and PAT front. The company has reported a lower net profit at Rs 281 crore for the quarter under review as compared to Rs 370 crore for the same quarter in the previous year, impacted on account of lockdown during the second half of March 2020. Net sales dropped by 12.3% at Rs 1,865 crore for Q4 FY20 as compared to Rs 2,128 cr for the Q4FY19, EBITDA declined 23% YoY to Rs 352 crore for the Q4FY20 from Rs 457 crore for the Q3FY19 and EBITDA margin...