Prabhudas Lilladher's research report on Dabur India
Dabur 3Q results were in line led by 1) Improved recovery in rural demand (~50% of sales) despite sluggishness across industry 2) market share gain across categories and 3) success of new launches. Medium term outlook is improving with Demand/volume growth trends expected around mid to highsingle digits with rural growing ahead of urban amidst moderating inflation and higher government spending. We believe sustained innovation, premiumisation and launches in core segments like Healthcare, oral care & HPC will help sustain double digit growth.
Outlook
We tweak our FY24/25/26 EPS estimates by 0.1/-1/-1.9% and estimate 13.7% EPS CAGR over FY24-26. We arrive at DCF based target price of Rs600 (42.5x Dec25 EPS). Dabur trades at 37.9x Sep25 EPS which is at 10% discount to LPA. Retain Accumulate.
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