Upcoming Webinar:'COLLECTIVE FORCE: India Inc. unites to tackle the second wave of COVID-19' on June 23, 11 am. Register Now!

Buy Dabur India; target of Rs 565: Motilal Oswal

Motilal Oswal is bullish on Dabur India recommended buy rating on the stock with a target price of Rs 565 in its research report dated July 30, 2020.

August 04, 2020 / 08:18 AM IST
  • bselive
  • nselive
Todays L/H

Motilal Oswal 's research report on Dabur India

While results were in-line, ~7% growth in June and July is encouraging. As pointed out in our upgrade note, the structural and medium-term narrative on topline growth is turning highly attractive on account of: (a) strong traction in the profitable Healthcare business, (b) an attractive rural growth outlook (with ~48% of Dabur's domestic sales coming from rural), and (c) a spate of initiatives to boost growth under the new CEO. EPS growth for the current year may be in mid-single digits due to: (a) investments in direct reach, (b) technology and analytics, and (c) support required for new launches. Nevertheless, building blocks are being set up for high growth in subsequent years. Maintain BUY.


High near-term valuations appear justified at this initial stage of structural turnaround, which could potentially result in ~20% EPS growth following the investment phase for the current year. Maintain BUY, with TP of INR565 (50x Jun'22 EPS).

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.

Broker Research
first published: Aug 4, 2020 08:18 am

stay updated

Get Daily News on your Browser