Dabur India Ltd. share price target

Maintain BUY with unchanged TP of Rs. 680 owing to 1) recent correction in stock price making risk-reward favourable, 2) healthy Q3 performance and 3) stability on margins despite RM pressures.

recall and lineage over the years. Dabur has cut adspends to sustain margins (like other FMCG players) but that does not seem to be a sustainable trend given the pipeline of new launches in large categories. We expect near term volatility in margins although market share gains in core categories and new lunches around core infuse confidence. Dabur trades at 38.1xFY24 EPS after factoring in 18% EPS CAGR over FY22-24 with 24% ROE and 50% dividend payout. Retain accumulate with 12 month DCF based target price of Rs647 (unchanged). However, expect back ended returns given sectoral rotations,...

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...

Maintain BUY with revised TP of Rs. 680 (Rs. 590 earlier) and roll forward our PE multiple of 49x to Sep23 earnings.

DABUR India (DABUR) 2QFY22 result was above our estimates. DABUR continued to post strong double digit growth on a high base driven by market share gains across all key verticals; Health Care, Home Care, Personal Care and Foods. Health Care witnessed some moderation in demand especially for health supplements compared to previous quarters, but tailwinds still persists and DABUR continues to gain market share from competition. Revenue growth in HPC and Foods portfolio is tracking well; aggressive product launches and strong market share gains are healthy signs. Urban market grew at higher rate compared to rural for DABUR. Positively, international business...

Significant shift in consumption towards healthier, natural & Ayurveda based products would be driving growth for the company Aggressively foraying into many big categories (edible oil, carbonated drink, household insecticides, fruit drinks) and new products launches Increasing the distribution of many urban products in hinterland reach of 83,000 villages) with lower price points & different variants (honey Tasties') With normalisation of mobility, full-fledged summer season after acquisition of south & west territories is likely to drive robust volume growth...

Grew Rural coverage to 83.5k 18 months ahead of timeline. We upgrade Dabur from Hold to Accumulate following strong market share gains in core categories, sustained increase in direct rural reach, lesser impact of input cost inflation due to niche products and sustained innovation pipeline. Although rural demand is a bit soft, we expect it to be temporary given good monsoons and increased rural job opportunities in Infra and housing. Management maintains double digit revenue growth for FY22 and...

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...

Market share gain across categories drive high double digit revenue growth Consolidated revenue grew 32%YoY (v/s -13%YoY in Q1FY21) driven by 35%YoY growth in India FMCG business (+34%YoY volume growth) while International business grew 28%YoY (+34% CC growth). Growth in Health Care remained strong at 30%YoY (vs 29%YoY in 1QFY21) driven by market share gains in Chyawanprash, Pudin Hara and Hajmola. Foods portfolio recorded strong business recovery (+80%YoY) driven by 85% YoY revenue growth in Beverages (Real gained 20bp market share) and 18%YoY growth in Culinary segments. Revenue from HPC grew 26% YoY driven by...