Buy Dabur; target of Rs 620: Motilal Oswal

Motilal Oswal is bullish on Dabur recommended buy rating on the stock with a target price of Rs 620 in its research report dated May 08, 2021.

Broker Research

June 10, 2021 / 11:14 IST

An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

26 Aug, 2025 12:21

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Motilal Oswal's research report on Dabur

While Dabur reported consolidated sales growth of 25.3% YoY in 4QFY21, it was on a low base. Thus, the average sales growth momentum in the last two-years dipped to a more modest 6.5% in 4QFY21 from 8.9%/11.5% in 2Q/3Q. There will also be some impact from the slower-than-expected recovery in the Beverages business (15% of sales in FY21) due to the lockdowns impacting sales in the key summer season. Along with higher than anticipated tax rates, these factors have led to a 9.4%/6.9% cut in our FY22E/FY23E EPS.

Outlook

Given the long term earnings growth potential of the business, valuations at 43.2x FY23E do not appear expensive. We maintain our Buy rating, with a TP of INR620 per share (50x FY23 EPS).

For all recommendations report, click here