Accumulate Dabur India; target of Rs 603: Prabhudas Lilladher

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26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Dabur India

We are maintaining our EPS estimate of 11.5/13.8 for FY23/24 on expectations of strong growth in drinks, beverages and foods, IBD & increasing share of e-commerce innovations. We expect near term growth pressures given input cost inflation, slowdown in rural demand & overall decline in discretionary consumption. However, we remain positive on long term outlook given 1) Innovation led growth strategy, 2) Increasing share in foods & beverages category 3) LUP Innovations allowing DABUR to leverage its distribution 4) Cost saving initiatives and 6) Strong rural distribution coverage of 90k villages (30k added in FY22) 7) 4-5% incremental sales every year from ecommerce innovations. Dabur remains a formidable play on recovery in rural demand in coming quarters.

Outlook

Dabur trades at 38.2x FY24 EPS with 16% EPS CAGR over FY22-24 and 24% ROE and 50% dividend payout. Retain accumulate with 12 month DCF based target price of Rs603 (unchanged).

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