Geojit's research report on Dabur India
Dabur India Ltd is a leading Indian FMCG company and the world’s largest ayurvedic and natural health care company, with a portfolio of over 250 products. Dabur India’s consolidated revenue grew 6% YoY to Rs. 2,986cr, led by a strong performance in the Food and Beverage (F&B) and Home and Personal Care (HPC) segments. EBITDA was down 3.2% YoY to Rs. 601cr, whereas EBITDA margin fell 190bps YoY to 20.1%, mainly because of higher raw material costs. With its expansion in the food markets by acquiring Badshah Masala, its strong brand name and extensive distribution network, Dabur is poised well in the FMCG market.
Outlook
Although inflationary pressure remains a concern, the festive season and good harvest should help recover demand in the rural and urban FMCG markets. Therefore, we maintain our BUY rating on the stock with a revised target price of Rs. 616 based on 48x FY24E adjusted EPS.
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