Buy Dabur; target of Rs 600: Motilal Oswal

Motilal Oswal's research report on Dabur

Dabur’s 1QFY26 performance was largely in line with our estimates. Cons. revenue increased ~2% YoY. Excluding the impact of seasonal portfolio, consol. sales grew by 7%. India business revenue grew by 4.3% YoY, excluding the seasonal portfolio. Domestic volume declined 1%; excluding the seasonal portfolio impact, volume grew ~3.5%. Home & Personal Care revenue was up 5%, backed by strong performance in oral care, home care and skin care. The healthcare portfolio declined by 4.4%; excluding glucose, it was up by 2.7%. In this portfolio, Dabur has increased prices by ~6%. F&B revenue declined 14.3% YoY given milder summers and unseasonal rains. The international business grew 13.7% YoY in cc terms and 12.7% in INR terms.

Outlook

We reiterate our BUY rating on the stock with a TP of INR600 (premised on 45x P/E on Jun’27E).