HDFC Securities is bullish on Dabur India has recommended buy rating on the stock with a target price of Rs 482 in its research report dated February 02, 2019.
Prabhudas Lilladher recommended hold rating on Dabur India with a target price of Rs 456 in its research report dated February 01, 2019.
The stock had corrected significantly (down 25 percent from 52-week high) after the management’s Q2 commentary on rural outlook.
Management’s positive commentary on the steady rural growth outlook was the key relief from the result.
Household Insecticides continued to see stagnant performance with 2 year CAGR of mere 3 percent. Company noted flat growth mainly driven by unfavorable season in South India. However, this is strikingly contrast to growth seen by Jyothi labs in this segment in Q3 (12 percent YoY).
The company has been working on reducing costs, resulting in a 180 bps and 110 bps decline in raw material and employee cost, respectively, as a percentage of sales over the last six quarters
One needs to closely watch for pricing growth, which was a shade lower than expectations. It possibly reflects upon recent moderation in cost inflation.
Market beta (sensitivity to broader index) of various FMCG stocks are well below one, which means they decline or rise less in times of market wide correction or upsurge phases, respectively
The stock is currently trading at 16.3 times its estimated earnings for FY19, which means it is available at a discount to the industry average.
Prabhudas Lilladher recommended accumulate rating on Dabur India with a target price of Rs 377 in its research report dated May 02, 2018.
ICICI Direct is bullish on Dabur India has recommended Buy rating on the stock with a target price of Rs 415 in its research report dated May 02, 2018.
Edelweiss is bullish on Dabur India has recommended buy rating on the stock with a target price of Rs 438 in its research report dated May 02, 2018.
We expect improving growth outlook led by demand in rural areas, falling competitive intensity (except for juices) and improvement in international businesses to lead to a re-rating in the stock.
We are encouraged with demand pick up in rural market. Sales growth through Dabur's Super stockist channel, which is largely rural, was 26% YoY and augurs well for a company having sales contribution of about 45-50% from rural areas.
Motilal Oswal is bullish on Dabur has recommended buy rating on the stock with a target price of Rs 415 in its research report dated January 31, 2018.
Axis Direct is bullish on Dabur India has recommended buy rating on the stock with a target price of Rs 395 in its research report dated January 10, 2018.
Reliance Securities is bullish on Dabur India has recommended buy rating on the stock with a target price of Rs 381 in its research report dated October 31, 2017.
Prabhudas Lilladher is bullish on Dabur India has recommended to Accumulate on the stock with a target price of Rs 342 in its research report dated October 31st , 2017
ICICI Direct is bullish on Dabur India has recommended buy rating on the stock with a target price of Rs 375 in its research report dated November 01, 2017
The stock is currently trading at 34x 2019e earnings and given the improved growth visibility, the stock provides an investment opportunity in the consumption space.
HUL posted a good recovery in volume and had a relatively smooth transition through GST. While its focus on the natural portfolio is worth noting, competitive intensity cannot be wished away.
Moneycontrol attempts to identify stocks that wise investors should use to duck and weave through this particular storm.
In the consumption space, it makes a credible investment rationale if one looks at the alternatives that are better priced and offering higher return on equity.
The falling market share for this single product category company keeps us concerned and we prefer to wait on the sidelines, looking for any definitive signs of improvement