Dabur India Ltd. share price target

Dabur's financial track record has been healthy with its revenues and PAT growing at a CAGR of 14% & 17% respectively over FY12-16. While the performance in 9MFY17 has been disappointing (led by slowdown in demand), we expect the growth to improve going forward, led by demand revival, new launches, increasing focus on innovating offerings and brand building activities.

Revenue fell by 6.48% to Rs. 1847.67 Cr in Q3FY17 when compared to the previous quarter. Also, it fell by 6.09% when compared with Q3FY16.

Consolidated net revenue contracted by 6.1% YoY to Rs 18.5bn, at par with our expectation. EBITDA & APAT declined by 11.6% & 7.5%. Domestic consumer business (66% of sales) degrew by 6.8% with 5% volume decline. Revenue growth pressure was across categories.

ICICI Securities Ltd | Retail Equity Research Dabur India (DIL) reported 6.1% YoY decline in consolidated net sales to | 1,847.7 crore (I-direct estimate: | 2054.8 crore) in the backdrop of demonetisation. Owing to de-stocking & high promotional spend, the standalone business declined 6.5% (5.0% volume decline). The international business was also under pressure and declined 5.2% largely on account of currency devaluation The consumer care segment declined 11.2% YoY. However, the food...

Dabur India has posted weak performance in 3QFY17 owing to adverse impact of demonetisation. Its consolidated revenues fell by 6.1% to Rs18.5bn, while PAT dipped by 7.6% to Rs2.9bn. EBITDA de-grew by 12% to Rs3.3bn owing to falling revenues and lower gross margins. Trimming down revising our earnings estimates by 5%, we expect Dabur's revenue and earnings to deliver 6.5% & 9% CAGR, respectively through FY16-18E. We maintain our BUY recommendation on the stock with a...

Daburs net revenue was up by mere 1% YoY to Rs 19.7bn, lower than our expectation of 6.5% growth. Domestic consumer business grew by 2.4% with 4.5% volume growth. EBITDA & APAT grew by 1.1% & 5%.

ICICI Securities Ltd | Retail Equity Research Dabur reported subdued Q2FY17 numbers with muted revenue growth and flat EBITDA margin. Revenue grew merely by 1.0% YoY to | 1975.7 crore as though the standalone business grew 2.3% YoY, the international business declined 2.3%. The standalone business was driven by domestic volume growth of 4.5% YoY led by home & personal care (6% growth) and food business (15.2% growth) Oral care witnessed strong volume growth of 11% YoY largely led by...

ICICI Securities Ltd | Retail Equity Research Dabur reported muted numbers on the sales front for Q1FY17 with growth of 1.2% YoY to | 1923.9 crore whereas operational performance came in ahead of our expectations. The underlying volume growth stood at 4.1%. Adjusting for the impact of Ind AS, net sales came in at | 2102.7 crore (I-direct estimate: | 2264 crore) The domestic business grew by 0.5% YoY led by growth of 11.6%, 4.3%, 2% growth in oral care, foods & home care segments,...

Key highlights: Domestic revenue growth disappointed because Home and Personal Care reported sluggish numbers. Only oral care reported robust growth of 12% yoy in the segment. In Health Care, supplements grew by 7% while digestives and OTC ethicals...

Dabur's 1QFY17 consolidated sales grew just 1.2% YoY (against our estimate of 10.5% YoY growth) to INR19.2b (Ind-AS). EBITDA grew 9.1% YoY (our estimate: 11.9% YoY) to INR3.4b (Ind-AS), while PAT grew 12% YoY (our estimate: 13.2% YoY) to INR2.9b. Domestic volumes grew 4.1% YoY. The domestic Consumer Care segment posted 0.5% sales growth. While Oral Care (11.6% growth), Home Care (2.1%) and Foods (4.3%) saw positive growth, revenues declined for Health Supplements (-1.1%), Digestives (-5.6%), OTC & Ethicals (-10.1%), Hair Care (3.3%) and Skin Care (-3%). Toothpaste market share increased 200bp YoY. Hair...