Buy Dabur India; target of Rs 605: Sharekhan

Sharekhan's research report on Dabur India

Dabur India’s (Dabur) domestic volumes grew by a healthy ~18.1%, beating ours as well as the street’s expectation of 11-12%. Health supplements, OTC & ethicals, shampoos and oral care posted healthy growth of 34.5%,29%, 28.6% and 28%, respectively. Healthcare and oral care products to continue good run while revival in home care, foods and skin care will drive next leg of revenue growth. Management aims to maintain OPM through cost-saving initiatives and price hikes.

Outlook

Revenues and PAT likely to clock CAGR of ~14% and 16% over FY2020-23. We maintain a Buy on the stock with PT of Rs. 605.