Buy Dabur; target of Rs 635: Motilal Oswal

Motilal Oswal is bullish on Dabur recommended buy rating on the stock with a target price of Rs 635 in its research report dated January 31, 2024.

Broker Research

February 07, 2024 / 18:38 IST

Buy

26 Aug, 2025 12:21

Volume

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Motilal Oswal's research report on Dabur

Dabur’s 3QFY24 performance was largely in line. Consolidated revenue increased 7% YoY (in line) with the India business witnessing a growth of c.9% YoY and the International segment at 1% YoY (12% in cc). India volume growth stood at 6% YoY (organic growth at 4%). HPC business was up 7% YoY with Oral care, Hair Oil, Home Care, and Shampoo clocking 8%, 5%, 7%, and 11%, respectively. The Healthcare division was weak at 3% growth, due to the delayed winter season. Both Chyawanprash and honey gained market share. F&B clocked 5% organic growth with the Badshah portfolio up by 33% YoY. GM was up 300bp YoY and 30bp QoQ to 48.6%. High A&P spend (up 36% YoY) limited the EBITDA margin expansion to 30bp YoY to 20.5%. EBITDA was up 8% YoY.

Outlook

The operating margin also has scope for improvement in the medium term, hovering in the c.20% band over the last eight to nine years (unlike peers that enjoyed expansion). We value Dabur on 48x Dec’25 EPS to arrive our TP of INR 635. We reiterate our BUY rating on the stock.

For all recommendations report, click here