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Motilal Oswal neutral on Dabur India

Motilal Oswal has maintained a 'Neutral' rating on Dabur India with a target price of Rs 200, in its research report dated November 03, 2014.

November 24, 2014 / 12:51 IST
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Motilal Oswal's research report on Dabur India

"Dabur’s (DABUR) 2QFY15 results were slightly below estimates, with consolidated sales growth of 10.4% to INR19.3b (est. INR20.2b). EBITDA margin contracted 60bp YoY to 17.9% (est. 18.7%), while EBITDA grew 6.6% YoY at INR3.5b (est. INR3.8b). Recurring PAT grew 15.1% to INR2.9b (est. INR2.9b)."

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"DABUR’s continued and strong volume growth delivery in a challenging macro backdrop is a reflection of its balanced portfolio and recent investments behind distribution expansion, in our view. We have largely retained our estimates as we incorporate management’s guidance of back-ended recovery. However, valuations at 37.8x FY15E and 32.5x FY16E EPS are rich, in our view. We maintain a Neutral rating with an unchanged target price of INR200", says Motilal Oswal research report.

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