Buy Dabur India; target of Rs 745: ICICI Direct

ICICI Direct's research report on Dabur India

Dabur India (DIL) is one of the biggest FMCG companies with a presence in Ayurveda based products across categories. The company has a dominant market share in health supplement, OTC & ethical products, hair oils & juices. Moreover, it is continuously gaining market share in the oral care category. The company has total distribution reach of 6.9 million retail out with direct reach of 1.3 million outlets. It would increase direct distribution to 1.5 million outlets in the next two years Dabur also derives ~48% of its sales through rural regions with a presence in 83,000 villages, which would increase to 90,000 villages in next one year

Outlook

We continue to maintain our BUY rating on the stock We value the stock at Rs 745 on ascribing 55x FY24 earnings multiple.