Buy Dabur India, target price Rs 605: Motilal Oswal

Motilal Oswal has given a buy rating to Dabur India with a target price of Rs 605. The share price moved up by 1.69 per cent from its previous close of Rs 515.45. The stock’s last traded price is Rs 524.15.

Dabur India Ltd., incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 92259.35 Crore) operating in FMCG sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 2516.04 Crore, up 27.07 % from last quarter Sales of Rs 1979.98 Crore and up 13.75 % from last year same quarter Sales of Rs 2211.97 Crore Company reported net profit after tax of Rs 483.19 Crore in latest quarter.

Investment Rationale
High near-term valuations appear justified at this initial stage of structural turnaround, which could potentially result in ~20% EPS growth following the investment phase for the current year.

Promoter/FII Holdings
Promoters held 67.9 per cent stake in the company as of Sept 30, 2020, while FIIs held 18.1 per cent, DIIs 6.9 per cent and public and others 7.2 per cent.