Dabur India Ltd. share price target

In line with other consumer companies, Dabur India has delivered a muted performance in 1QFY18 due to trade inventory correction prior to GST roll-out. Its consolidated revenues fell by 8.3% YoY to Rs17.9bn, while EBITDA was lower by 11.4% to Rs3.1bn. Although reported net profit decreased by 9.8% YoY to Rs2.6bn there was an exceptional charge of Rs145mn regarding...

Revenue fell by 6.51% to Rs. 1790.06 Cr in Q1FY18 when compared to the previous quarter Revenue fell by 6.51% to Rs. 1790.06 Cr in Q1FY18 when compared to the previous quarter

We have BUY rating, with a TP of Rs 340, based on 33x Jun-19EPS. DABURs consolidated net revenue contracted by 8% YoY to Rs 17.9bn, in-line with expectations. EBITDA and APAT grew by -11% and -6% YoY. Domestic business (~66% of sales) grew -5%, with -4.4% volume growth (in-line with expectations), owing to channel destocking. Daburs volumes were better than its peers i.e. Emami -18%, Marico -9%, and Colgate -5%. Daburs Hair Care, Home Care, Skin Care, Health Care and Beverages segments grew -11%, 6%, 4%, -7% and -8% respectively. Growth of 10% in the Toothpaste was encouraging, especially when Colgate clocked a 4% decline.

Dabur's India sales growth has slowed down sharply from a lofty 19% CAGR over FY06-13 to a mere 7% over FY13-17. FY17 annual report suggests renewed thrust on positioning the company as a Science-based Ayurveda' specialist to bring growth back. However, we see more of the same when we rea..

Dabur was witnessing some revival in growth during April and May led by gradual recovery in demand and rural growth has been marginally ahead of urban growth. However, June month has been witnessing destocking by distributor on account of GST....

DABURs consolidated net revenue contracted by 5% YoY to Rs 19.1bn, below our expectations. EBITDA and APAT increased by 0.6% each. Domestic business (71% of sales) grew 0.7%, with 2.4% volume growth. A mild recovery has been seen, as 3QFY17 volumes contracted by 5%. Higher dependence on the rural segment and wholesale channels were the key reasons for the recovery being mild.

ICICI Securities Ltd | Retail Equity Research Dabur reported 4.7% YoY decline in consolidated net sales to | 1,914.7 crore (I-direct estimate: | 2067.5 crore). The standalone business stayed flat during the quarter but the international business witnessed 16.8% YoY decline largely on account of economic slowdown and currency devaluation in its international markets The consumer care segment declined 6.8% YoY but the food & retail segments grew 8.2% YoY and 3.2% YoY, respectively. The domestic...

Management has reduced promotional offers and have taken selective price increases to pass on the increase in input cost. Major pricing decision will be taken post clarity on GST rate. Company intends to increase ad spend and would focus on growing top-line even at...

Dabur India has reported a decent performance in 4QFY17 amid weak consumer demand environment especially in the aftermath of demonetisation. While its consolidated sales fell by 4.7% YoY to Rs19.5bn, EBITDA and PAT remained flat at Rs4.2bn and Rs3.3bn, respectively. Though its standalone sales came in flat at Rs14.3bn, EBITDA and PAT rose by 4% YoY and 5% YoY to Rs3.6bn and Rs3bn, respectively. Expecting 10.9% revenue and 11.7% earnings CAGR...

Dabur's 4QFY17 revenues came below our expectation, albeit, APAT was in-line. The domestic business posted below estimated revenue performance primarily due to lower than estimated volume growth. Mere 2.4% volume growth in the domestic business implies that there's still pinch of the demonetization. GM contracted 160bps, but the reduction in other operating expenses helped the operating margin expand. Though media spends declined significantly during the quarter, we expect it to increase in the ensuing quarters to support volume growth. We believe that the...