Motilal Oswal's research report on Dabur
DABUR’s 4QFY22 result was broadly in line with our volume, sales, and gross profit estimates, but higher other expenses led to a miss on EBITDA. The outlook for Juices is positive, given the robust summer demand. The demand and margin outlook for the international business is strong in FY23. Allied with higher pricing power in the Healthcare business, we remain positive on double-digit consolidated sales growth in FY23. Higher pricing power across its portfolio is only being strengthened by continued market share gains in 99% of its portfolio, which means that material costs may be less of a concern in FY23 v/s its peers.
We maintain our Buy rating on healthy earnings growth prospects and inexpensive valuations. In the near term, DABUR’s sales visibility is better than its peers. Coupled with higher pricing power v/s its peers, DABUR’s earnings have better visibility. We maintain our Buy rating with a TP of INR630/share (45x FY24E EPS).
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