Dabur Indian share price will remain in focus on February 3 after company reported a decline in its Q3 net profit.
Dabur India reported a 5.5 percent year-on-year fall in consolidated net profit at Rs 476.6 crore for the quarter ended December 2022.
Net profit stood at Rs 504 crore in the same quarter a year ago, Dabur said in a stock exchange filing on Thursday.
However, revenue from operations grew 3.5 percent YoY to Rs 3,043 crore from Rs 2,942 crore in Q3 FY22. Revenue crossed the Rs 3,000-crore mark for the first-time ever, said the company.
On the operating front, EBITDA (earnings before interest, taxes, depreciation and amortization) fell 2.7 percent to Rs 610.4 crore. Operating margins fell 100 basis points to 20.1 percent from 21.3 percent YoY.
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Here is what brokerages have to say about stock and the company post December quarter earnings:
Prabhudas Lilladher
Brokerage house has retained 'accumulate' rating on the stock with target price of Rs 609
Dabur’s 3Q results showed 3 percent decline in volumes while profits were in-line led by 24 percent lower adspends
Prabhudas Lilladher believe Dabur is a formidable play on growth revival in rural India given ~45percent contribution to overall sales
It believe sustained innovation and launches in core segments like Healthcare, F&B, Oral Care has the potential to accelerate growth in coming quarters.
Sharekhan
Research house has maintained 'buy' rating with a revised price target of Rs 640
Q3FY2023 was a soft quarter for Dabur as slowdown in rural markets, delay in winter season and high input prices had a toll on the company’s performance
Revenue growth in the medium term will be driven by market share gains, distribution network expansion, investments on power brands and new launches, while profitability is expected to improve on the back of a moderation in raw material inflation and cost-saving initiatives
Nirmal Bang
Brokerage firm has maintained its 'buy' recommendation on the stock with a revised target price of Rs 640
Dabur is currently trading at 51x/43x/39x on FY23E/FY24E/FY25E EPS, Keeping the valuation benchmark companies in consideration and return ratios differential for Dabur compared to Britannia, we cut our target multiple for Dabur to 47x Sept’24E EPS (~6% discount to BRIT multiple)
CLSA
Broking firm has kept 'outperform' rating on the stock with a target at Rs 620 per share.
The rural slowdown is concerning, which is a critical factor for stock re-rating.
The higher rural salience affects the growth, while share gains are continued.
The inflationary pressure is partially negated with lower A&P spend, rural weakness is concerning and central India pressure intense, reported CNBC-TV18.
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