Steady performance; expects further growth pickup

Company
02 Aug 2024
5 Min read 
  • Naveen Trivedi estimates changes in Dabur's stock
  •  CMP increased to INR 644 and TP to INR 750 (+17%)
  •  Rating changed to Buy
  •  Bloomberg DABUR IN Equity Shares at 1772 M.Cap (INRb)/(USDb) 1140.5 / 13.6
  •  1QFY25 performance in line with estimates
  •  Consolidated revenue increased 7% YoY
  •  International business grew 18% YoY in constant currency
  •  GM improved 120bp YoY to 47.8%
  •  EBITDA margin expanded by 25bp YoY to 19.6%
  •  Dabur valued at 55x Jun26E EPS to arrive at TP of INR 750
  •  Domestic volume growth at 5.2%
  •  Rural markets showing gradual pickup
  •  Shampoo segment grew by 14%
  •  Oral care clocked 11% growth
  •  FMCG business volumes up 5% YoY in 1QFY25
  •  Consolidated net sales grew 7% YoY to INR 33.5b
  •  Gross margin expanded by 120bp YoY to 47.8%
  •  EBITDA margin expanded by 25bp YoY to 19.6%
  •  No material changes to FY25E/FY26E estimates
  •  Dabur consistently witnessed higher rural growth compared to urban regions
  •  Valued at 55x Jun26E EPS to arrive at TP of INR 750
  •  Reiterate BUY rating on the stock
Login / Open Demat Account to read the report

Never Miss Out on Hot Market Updates

Get exclusive market news delivered to your inbox - on priority