Neutral Dabur; target of Rs 535: Motilal Oswal

Neutral

Motilal Oswal's research report on Dabur

Dabur’s (DABUR) 3QFY26 performance was broadly in line with our expectations. Consolidated revenue grew ~6% YoY. India business revenue grew 6% YoY, with volume growth at 3% (est: 5%). Oct witnessed GST transition-led trade disruption, which improved mid-November onwards. Overall, the quarter appeared neutral from the GST destocking and restocking point of view. Compared to other FMCG peers, DABUR’s volume growth performance was slightly weaker. Rural continued to grow ahead of urban, while the gap narrowed from 600bp (last year) to 300bp, led by a recovery in urban. That said, DABUR expects 4QFY26 revenue to be in high single digits.

Outlook

The stock has remained in a similar range over the last five years. We reiterate our Neutral rating on the stock with a TP of INR535 (based on 40x Dec’27E EPS).

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