Dabur India Q3 Results Review - Green Shoots In Rural Market To Drive Growth: Prabhudas Lilladher

Prabhudas Lilladher Report

Dabur India Ltd.'s Q3 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 high single digits with rural growing ahead of urban amid moderating inflation and higher government spending.

We believe sustained innovation, premiumisation and launches in core segments like healthcare, oral care and home and personal care will help sustain double digit growth.

We tweak our FY24/25/26 earning per share estimates by 0.1/-1/-1.9% and estimate 13.7% EPS compound annual growth rate over FY24-26.

We arrive at discounted cash flow based target price of Rs 600 (42.5 times December 25 EPS).

Dabur trades at 37.9 times September 25 EPS which is at 10% discount to long average period. Retain 'Accumulate'.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.