Dabur India Ltd. share price target

believe that long term outlook remains positive given 1) Innovation led growth strategy, 2) Increasing share in oral care on the back of growth in herbal category 3) Innovations at low price point in beverages allowing DABUR to leverage its distribution 4) Cost saving initiatives like Project Samruddhi (savings of Rs 1.0bn in FY22) and 6) Focus on increasing rural distribution to 80k villages in 2 yrs. However recent surge in share price more than factors the positives, we therefore assign Hold rating (Under Review earlier) to the stock with TP of Rs 588. Expect near term underperformance, although long...

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...

DIL has been able to grow revenue by 10% in a challenging year. We believe health & immunity related tailwinds & related new product and increasing direct & rural distribution network (1.4 million outlets & 80000 villages) would help drive growth for the company. We expect 12.8% earnings CAGR in...

Retain BUY as we continue to believe in the companys right to win in newer categories, strong and visible share gains, healthy innovation pipeline, aggression in driving volume growth driving long term growth.

DABUR India (DABUR) 4QFY21 result was in line with our estimates. Consolidated revenue grew 25% driven by similar levels of volume growth. HPC business continued to witness strong recovery driven by improvement in demand for discretionary products (Gulabari and FEM) and market share gains in all other segments. In Health Care business; (i) DABUR gained market share in Chyawanprash and Honey (ii) NPDs drove revenue growth for OTCs while Ethical segment grew strong double digit led by distribution expansion, visibility initiatives and activations. Food and Beverage business reported strong recovery in beverages while culinary portfolio continues to grow at strong double digit. Raw...

While Dabur reported consolidated sales growth of 25.3% YoY in 4QFY21, it was on a low base. Thus, the average sales growth momentum in the last two-years dipped to a more modest 6.5% in 4QFY21 from 8.9%/11.5% in 2Q/3Q. There will also be some impact from the slower-than-expected recovery in the Beverages business (15% of sales in FY21) due to the lockdowns impacting sales in the key summer season. Along with higher...

Tax rate guidance at 21.5%-22% going forward We are decreasing FY22/23 EPS estimates of Dabur India by 8.0%/5.7% on back of 1) higher tax rate guidance of 21.5-22% (18-18.5% earlier) 2) lower than expected growth in Health Supplements and Healthcare and 3) no margin expansion given input cost pressures. Dabur remains cautiously optimistic given that unlike last year, localized lockdowns would not impact discretionary portfolio and sharp pick up in immunity boosting products demand from 2 nd half of April. We believe that the company will be able to...

We have kept our estimates unchanged and except double-digit volume growth and strategic shift in A&P; spends. Retain BUY and TP of Rs. 610 as we value the stock at 49x It's FY23E EPS.

DABUR India (DABUR) 3QFY21 result was better than our estimates. Consolidated revenue grew by double-digit for the second consecutive quarter led by strong FMCG domestic volumes (+18%YoY) and double digit revenue growth in international geographies. DABUR has gained market share in most of the categories. Health supplement continued its growth momentum delivering 35%YoY revenue growth driven by strong double digit volume growth and market share gains in Chyawanprash and Honey. In HPC; revenue from hair oil, shampoo and home care witnessed significant recovery. In food portfolio; new launches are tracking well. We maintain...

The company continued to aggressively launch new products across categories. It introduced Himalayan Forest Honey, Dabur Red Pulling Oil, Herb'l toothpaste variants, Premium hair Oil under Vatika & range of products in OTC & Ethical space. Moreover, within previously launched products healthcare juices, Tulsi drops, Dant Rakshak, Herb'l variants & OTC & Ethicals are getting traction. DIL has been very aggressive in new product launches in the last 10 months, which are now contributing 4-5% of sales. We believe renewed focus on health & immunity boosting products has...