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Buy Dabur India: target of Rs 645: Sharekhan

Sharekhan is bullish on Dabur India has recommended buy rating on the stock with a target price of Rs 645 in its research report dated May 05, 2022.

May 07, 2022 / 12:56 PM IST
 
 
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Sharekhan's research report on Dabur India


Dabur India reported y-o-y revenue growth of 7.7% (with muted volume growth of 2%) in Q4FY2022 on a high base of Q4FY2021 (25% growth); two-year CAGR stood at 16%. Input cost inflation dragged down OPM by 92 bps to 18% and it would continue to put pressure on margins. Management will focus on cost efficiencies and stringently manage advertisement spends to maintain OPM y-o-y. Sustained market share gains, expansion of distribution network (especially in rural market), investments on power brands and new launches would help company to achieve double-digit revenue growth in the medium to long term.


Outlook


The stock trades at 43.9x/35.9x its FY023/24E EPS. We maintain a Buy on the stock with a revised price target of Rs. 645.


For all recommendations report, click here

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first published: May 7, 2022 12:56 pm
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