Sharekhan's research report on Dabur India
Dabur India’s (Dabur’s) Q4FY25 numbers were weak, with consolidated revenue marginally rising ~1% y-o-y and OPM declining 150 bps y-o-y to 15.1% leading to an 8.5% y-o-y fall in adjusted PAT. Demand is expected to gradually improve in the coming quarters. It targets high single-digit revenue growth and expansion in OPM for FY26. The management has employed a new seven-pillar strategy to accelerate profitable growth through focus on core brands, premiumisation, category expansion, portfolio rationalisation, distribution channel, M&A strategy and cost optimisation.
Outlook
Stock has corrected by 11% from recent highs and trades at 44x/39x its FY26E/FY27E earnings, respectively. We maintain a Buy rating with a revised PT of Rs. 570.
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