Buy Dabur; target of Rs 750: Motilal Oswal

Motilal Oswal's research report on Dabur

Dabur’s 1QFY25 performance was largely in line with our estimates. Consolidated revenue increased 7% YoY (in line), while constant currency (cc) growth was 10%. India volume grew by 5% YoY, with most categories seeing a pickup in QoQ growth, except the beverage portfolio (affected by heatwaves). International business grew 18% YoY in cc. GM improved 120bp YoY to 47.8% (in line). Conversely, high A&P spending (up 15% YoY) restricted EBITDA margin expansion at 25bp YoY to 19.6% (est. 19.6%). EBITDA growth was 8% YoY.

Outlook

We value Dabur at 55x Jun’26E EPS (earlier 50x) to arrive at our TP of INR750. We reiterate our BUY rating on the stock.