Buy Dabur India, target Rs 435: Motilal Oswal Securities
Motilal Oswal Securities has a buy call on Dabur India Ltd. with a target price of Rs 435. The current market price of Dabur India Ltd. is Rs 370.5.
The time period given by analyst is year when Dabur India Ltd. price can reach a defined target.
Dabur India Ltd., incorporated in 1975, is a large-cap company with a market cap of Rs 65079.38 crore.
Investment rationale by Motilal OswalValuation view: Changes to the model have not altered our FY19-20 estimates. The much-vaunted earnings revival in the sector appears poised to come through, and rural dependent plays are likely to be at the vanguard in FY19. DABUR has addressed the market share loss issue in its two key categories of Juices and Honey, while Oral Care continues to do very well. With an expected EPS CAGR of ~16% going forward (v/s less than 12% CAGR over FY14-17), we value the stock at 42x March 2020E (10% premium to three-year average) and derive a target price of Rs 435.
The time period given by analyst is year when Dabur India Ltd. price can reach a defined target.
Dabur India Ltd., incorporated in 1975, is a large-cap company with a market cap of Rs 65079.38 crore.
Investment rationale by Motilal OswalValuation view: Changes to the model have not altered our FY19-20 estimates. The much-vaunted earnings revival in the sector appears poised to come through, and rural dependent plays are likely to be at the vanguard in FY19. DABUR has addressed the market share loss issue in its two key categories of Juices and Honey, while Oral Care continues to do very well. With an expected EPS CAGR of ~16% going forward (v/s less than 12% CAGR over FY14-17), we value the stock at 42x March 2020E (10% premium to three-year average) and derive a target price of Rs 435.
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