Reduce Dabur India; target of Rs 540: Dolat Capital Market
Dolat Capital Market recommended reduce rating on Dabur India with a target price of Rs 540 in its research report dated January 29, 2021.
February 03, 2021 / 04:48 PM IST
Dolat Capital Market's research report on Dabur India
Dabur’s Q3FY21 results were in line with our estimate. Domestic FMCG volumes increased by 18.1% YoY – second consecutive quarter of double digit volume growth. Growth in the domestic market was driven by health care (+28.1%) and HPC (+15.9%) business. Healthcare contribution grew from 40% in Q3FY20 to 44% in Q3FY21 led by market share gains in chyawanprash and honey. The healthcare category is expected to grow faster post Covid with new launches.
We have broadly maintained our FY21/22/23E EPS estimates at Rs 9.4/9.8/10.8. We value the stock at 50x FY23E EPS to arrive at a TP of Rs 540. Considering rich valuations, we maintain Reduce; buy on dips.
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