Reduce Dabur India; target of Rs 520: Dolat Capital Market

Dolat Capital Market recommended Reduce rating on Dabur India with a target price of Rs 520 in its research report dated November 03, 2020.

November 07, 2020 / 06:56 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital Market's research report on Dabur India


Dabur’s Q2FY21 results exceed our estimate. Domestic FMCG volumes increased by 16.8% YoY. Growth in the domestic market was driven by health care (+49.3%) and HPC (9.1%) business. Healthcare contribution grew from 32% in Q2FY20 to 40% in Q2FY21 led by 2x growth in Chyawanprash and double digit growth in Honey- indicates change in consumer preferences. We believe that the healthcare category would continue to grow faster post Covid with new launches.



Outlook


We have upward revised our FY21E and FY23E EPS estimates at Rs 9.5 (+13%) and Rs 9.8 (+0.8%) and introduced FY23E EPS estimates at Rs 10.8. We value the stock at 48x FY23E EPS to arrive at a TP of Rs 520. Considering rich valuations, we maintain Reduce; buy on dips.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Nov 7, 2020 06:56 pm

stay updated

Get Daily News on your Browser
Sections