Moneycontrol
Last Updated : Feb 14, 2019 03:52 PM IST | Source: Moneycontrol.com

Buy Dabur India; target of Rs 482: HDFC Securities

HDFC Securities is bullish on Dabur India has recommended buy rating on the stock with a target price of Rs 482 in its research report dated February 02, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

HDFC Securities' research report on Dabur India


Dabur reported an in-line quarter with beat in domestic volume growth (12% vs. est of 9%) and miss on gross margins (-228bps vs. exp of -117bps). International revenue growth dented performance (up 3%) led by GCC region (-12%) and adverse currency. EBITDA/APAT grew by 10/10% (exp 9/12%). Gross margin decline was led by forex impact, volatile commodity inflation and higher promotional spend. The co. was aggressive with its promotional spend in categories like hair care, beverages and oral care. As a result, most of the categories gained market share during the quarter - beverages market share is at an all time high of 56% (up 300bps YoY). Dabur continued to scale brands - Dabur Sarson Amla became the 17th brand to cross Rs 1bn mark. Performance of Dabur Red (up 23%) and Dabur Honey (up 20%) reflects the decline in competitive intensity from Patanjali and consumers preference towards naturals.


Outlook


We expect Dabur to deliver revenue/EBITDA/APAT of 14/19/22% CAGR over FY19E-FY21E. We value Dabur at 38x P/E on Dec-20EPS to arrive at a TP of Rs 482 (Rs 477 earlier). Maintain BUY.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Feb 14, 2019 03:52 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant