Maximus Securities' report on Dabur India
With a portolio of over 400 products, Dabur is today’s India’s largest Natural Health & Personal Care Company. Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status.
Dabur products are available in more than 5 million outlets across the country making it amongst the most widely distributed FMCG companies in India.
As of FY14 Dabur had manufacturing plants spread across 12 locations in India - Baddi (Himachal Pradesh), Pantnagar (Uttaranchal), Sahibabad (Uttar Pradesh), Jammu, Silvassa, Nasik, Alwar, Katni, Narendrapur, Pithampur, Newai (Rajasthan), and Siliguri (West Bengal). Nearly 90% of its products are manufactured at company-owned units with the balance being produced at third party facilities.
Localised manufacturing and supply chain has been an important aspect of Dabur’s International Business strategy. Dabur also has manufacturing facilities in UAE, Turkey, Egypt, Nigeria, Nepal, Bangladesh and Sri Lanka.
Valuations:"Considering the diverse competitive product portfolio, scope for margin improvement, spending in advertisements and promotions, expansion of distribution network and revival in consumer demand we value Dabur with a P/E of 38.4x FY17E EPS to arrive at a target price of Rs. 330/share to be achieved within 18 months", says Maximus Securities research report.
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