February 02, 2017 / 16:34 IST
Consolidated net revenue contracted by 6.1% YoY to Rs 18.5bn, at par with our expectation. EBITDA & APAT declined by 11.6% & 7.5%. Domestic consumer business (66% of sales) degrew by 6.8% with 5% volume decline. Revenue growth pressure was across categories. Key categories (75% of domestic biz) grew by - Health supplements -14%, Hair care -20%, Oral care -5% & Foods +52%.
OutlookDabur has wide product basket along with balanced mix of urban & rural market. Historically, Dabur has delivered superior performance than its peers. Meaningful improvement in consumer off-take is positive and can reflect in Dabur’s performance too. The company commands high operating margin of >18% along with RoCE of 30%. We have BUY rating with TP of Rs 318 based on 32x Dec-18EPS.
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