Accumulate Dabur India; target of Rs 470: Dolat Capital
Dolat Capital recommended accumulate rating on Dabur India with a target price of Rs 470 in its research report dated May 27, 2020.
May 28, 2020 / 03:05 PM IST
Dolat Capital's research report on Dabur India
Dabur’s Q4FY20 results came significantly below our estimate as Covid-19 impact was higher than our anticipation. Domestic volume declined by 14.6% YoY during the quarter. Pre lockdown the company posted 4.6% volume growth. Considering lockdown and production disruption in April and May’20, the company expects impact of Rs 4.0-4.5bn on revenues and Rs 600-800mn on APAT in FY21E. We have reduced our FY21E and FY22E EPS estimates to Rs 8.4 (-16.4%) and Rs 9.8 (-12.2%), to factor in extended lock down and sluggish economic growth.
We value the stock at 48x FY22E EPS to arrive at a TP of Rs 470. Downgrade to Accumulate; buy on dips.
For all recommendations report, click here
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