Dabur India Ltd. share price target

1QFY25 underlying result was broadly in line with consensus with in-line sales but 1% lower EBITDA and EPS

With an upside potential of 11% from the CMP, we maintain our BUY rating on the stock.

Dabur’s 1QFY25 performance was largely in line with our estimates. Consolidated revenue increased 7% YoY (in line), while constant currency (cc) growth was 10%.

Dabur India (Dabur) to post mid to high single-digit revenue growth in Q1FY2025 with domestic volume growth of mid-single digits.

Dabur remains one of our preferred picks in the Consumer Goods sector, given
its diversified portfolio and better execution. The company’s thrust on rural
remains firm, with distribution expansion continuing to see better growth.

Recommendation: With an upside potential of 18% from the CMP, we maintain our BUY rating on the stock.

Amid a muted demand setting, Dabur’s thrust on enhancing its distribution has
been rewarding, with 95% of the portfolio seeing market share gains and better
growth in Rural (~8% vs ~4% growth in Urban).

Dabur’s 4QFY24 revenue growth was largely in line, but EBITDA was above
our estimate. Consolidated revenue increased 5% YoY (in line) and 7% YoY
in constant currency (cc) terms. For the India business, volume grew 4% YoY
(organic growth at ~3% YoY). International business grew 12% YoY in cc.