Dabur India Ltd. share price target

Revenue rose by 3.38% to Rs. 2032.91 Cr in Q4FY18 when compared to the previous quarter. Dabur India Ltd Q4FY18 results Comment

We value Dabur at 35x P/E on Mar-20EPS to arrive at a TP of Rs 410. Maintain BUY. Daburs revenues were in-line, but there was a beat on EBITDA and APAT. Consolidated net revenues on a like-to-like basis grew by 11% to Rs 20.3bn. Domestic (69% of total) clocked 10% growth while International grew by robust 17% in cc terms. EBITDA/APAT grew by strong 16/19% YoY.

Dabur reported 6.2% YoY growth in consolidated net sales of | 2,032.9 crore (I-direct estimate:| 2,073.6 crore; on comparable basis, consolidated net sales grew by 11.1%). The company reported a domestic revenue growth of 10% led by 7.7% volume growth during...

DABUR's 4QFY18 consol. sales grew 6.2% YoY to INR20.3b (est. of INR20.6b). EBITDA rose 16.2% YoY to INR4.9b (est. of INR4.4b). Adj. PAT increased 18.9% YoY to INR4b (est. of INR3.6b). Comparable domestic FMCG business(70% of revenues) sales grew 10% YoY, led by underlying volume growth of 7.7% (est. of +8.5%). Consol. EBITDA margin expanded 210bp YoY to 23.9% (est. of 21.5%), led by gross margin expansion (+170bp YoY to 50.7%), as well as lower ad spends (-20bp YoY) and staff costs (-10bp YoY). Note that this is the highest-ever EBITDA margin reported by DABUR on both quarterly and full-year basis. Adj. PAT grew 18.9% YoY to INR3.9b (est. of INR3.6b).

We recently upgraded Dabur to BUY rating on likely faster recovery in rural economy (where Dabur has an edge over competition) on multiple tailwinds, and Dabur realigning its supply chain with ayurvedic portfolio to boot. We estimate consolidated sales and EPS CAGR of 9% and 13% over FY17-20E.

Dabur India Ltd Q3FY18 results comment Revenue grew by 0.38% to Rs. 1966.44 Cr in Q3FY18 when compared to the previous quarter. Also, it increased by 6.13% when compared with Q3FY17

We value Dabur based on P/E of 35x Dec-19EPS, and arrive at a TP of Rs 401. We maintain BUY. Dabur reported strong in-line revenue and EBITDA growth in 3QFY18. Consolidated net revenues on a like-to-like grew by 13% to Rs19.7bn. Domestic business (70% of total) clocked 18% growth (our expectation 17%), led by 13% volume growth. International revenue contracted by ~6% but cc growth was at 5%. EBITDA up by strong 21% (in-line), lower other income slowed PAT growth to 13%.

ICICI Securities Ltd | Retail Equity Research Dabur India reported 6.1% YoY growth in consolidated net sales at | 1,966.4 crore (I-direct estimate: | 2148.9 crore). The company reported domestic revenue growth of 12.9% (comparable sales growth of 17.7%) led by 13% volume growth during the quarter. The...

Domestic volume grew by a healthy 13% YoY compared to 5% YoY de-growth in 3QFY17 and 7% YoY growth in 2QFY18. Rural growth was robust at 24% aided by company's initiative like Project Buniyaad. On comparable basis, revenue from Oral Care segment grew by 23% YoY owing to 26% YoY in toothpastes. Hair oil revenues grew 17% YoY. Revenue from Home Care segment increased by 36% YoY led by strong performance in Odonil and Sanifresh. While Health Care business witnessed 16.6% YoY growth, revenue from Foods business remained flat due to higher base effect. Whilst International business reported 5% YoY revenue growth in constant currency terms, Dabur's reported growth was impacted due to sharp currency depreciation...

Q3 domestic volume growth is likely to be in mid-teens given the weak base (declined 5% in Q3FY17) and demand recovery post GST.