Dabur India Ltd. share price target

Dabur India has built a rich ayurvedic heritage spanning over 136 years and is the 4th largest FMCG company in India and a leader in Ayurveda globally. It has a portfolio of over 250 herbal/ayurvedic products available in over 100 countries with International Revenue contributing 27% of revenues.

We recommend a BUY on DABUR INDIA with a Target Price of Rs 572, an upside of 10% from CMP of Rs. 520 and Stop Loss Rs. 494.

Dabur has two divisions in India (Consumer care division and Foods division)

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...

We have upward revised our FY21E and FY23E EPS estimates at Rs 9.5 (+13%) and Rs 9.8 (+0.8%) and introduced FY23E EPS estimates at Rs10.8. We value the stock at 48x FY23E EPS to arrive at a TP of Rs 520....

Dabur India Limited ( Dabur) earnings surprised the market with double digit volume growth in in Q2FY21 . Dabur's domestic business grew 16.8% YoY, much higher than the anticipated mid-single digit growth. Profit for the quarter grew by 19.9%YoY/+41.6% QoQ to Rs 483 Cr above our estimates of Rs 384 cr on the back of growth in topline, higher other Income and lower finance cost during Q2FY21. Consolidated revenue stood at Rs 2516 cr , above our estimates Rs2,274 cr registering a growth of 13.7%YoY/+27.1%QoQ mainly led by healthy growth in...

DABUR India (DABUR) 2QFY21 result was above our estimates. Consolidated revenue growth recovered to high double digit after two consecutive quarter of decline. Health supplement portfolio delivered astronomical 71%YoY revenue growth driven by 2x sales of Chyawanprash. In HPC; oral care, hygiene and shampoo portfolio revenue grew at 18-38% rate while revenue from Odomos, Odonil and Hair Oil portfolio declined 6-10%. Food continues to face growth head-winds due to sub-par performance of beverage portfolio. Performance of international business remained satisfactory. We expect DABUR, as a category leader in India, to benefit from the penetration of...

We have marginally revised our estimates for FY21/22/23E for double digit volume growth and strategic shift in A&P; spends. Retain BUY with unchanged TP of Rs.610 as we value the stock at 50x its FY23E EPS.

During the quarter, sales of health supplements, OTC, ethical saw 70.8%, 56.1% & 26.4% growth, respectively. Further, oral care & shampoo also witnessed 24.2% & 17.8% growth, respectively. The company continues to strengthen its market share in Chyawanprash (190 bps increase), toothpaste (90 bps increase) and shampoo (80 bps increase). We believe growth in health & immunity products is far more structural compared to hygiene or instant food products. The penetration levels of Chyawanprash & honey is ~4% & ~25%, respectively, which poses immense growth opportunity in...

Dabur reported a significant beat on the topline and volumes (third highest growth in the past 50 quarters). The Healthcare portfolio fared even better in 2QFY21 (49.3% YoY growth) v/s 1QFY21 (27.7% growth). Notably, Dabur surprised in the Home & Personal Care (HPC) and Food & Beverage (F&B;) segments HPC reported 9.1% YoY growth in 2QFY21 (14.1% decline in 1QFY21), and decline in F&B; was restricted to 3.8% YoY (34.2% decline in 1QFY21 and weak numbers for several preceding quarters). While Healthcare may face a higher base from 3QFY21, the performances of the...