Accumulate Dabur India; target of Rs 615: Prabhudas Lilladher

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Prabhudas Lilladher's research report on Dabur India

We change our EPS estimates by -3.5%/-0.1%/0.1% factoring in adverse RM inflation in FY23 & impact of Badshah Masala acquisition. Dabur had flattish volume growth in 2Q (3-year CAGR 8.7%) with market share gains across 95% of portfolio. We expect sequential gross margin improvement from 3Q23 given lower inflation & calibrated price hikes. Rural continues to remain impacted by higher product prices and has lagged Urban markets after 5 quarters. Normal monsoons, good harvest & increase in MSP will drive demand in rural in near/medium term. Long term outlook remains intact given 1) Innovation led growth strategy with focus on 8 core brands 2) Increasing share in Foods & Beverages & Hair care category 3) LUP Innovations allowing DABUR to leverage its distribution 4) Strong rural distribution coverage of 100k+ villages in 1HFY23 5) Entry into Rs250bn branded spices category with Badshah Masala acquisition and 6) 4-5% incremental sales/year from e-com innovations. Dabur trades at 38.0x Sept24 EPS with 14.9% EPS CAGR over FY22-25, 23% ROE and 50% dividend payout.

Outlook

Retain accumulate with 12 month DCF based target price of Rs 615 (Rs 604 earlier).

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.

Dabur India - 28-10-2022 - prabhu