Dabur India - Sustained Focus On Innovations, New Product Development: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.We attended Dabur India Ltd.'s Capital Markets Day 2023 wherein the company’s Chief Executive Officer and divisional heads presented their medium term strategy. Dabur reiterated plans to-grow power brands into power platforms,premiumise the portfolio,enter into new categories and increase total addressable market (3.2 times since 2019) andexpand into new variants and formats. Such efforts have yielded results over FY19-23 with market share gains across 90% of the portfolio, revenue growth of high-single digit and increase in share of innovations to 4% (1.4% in FY19). We believe sustained innovation and launches in core segments will help achieved double digit sales growth. Inflationary headwinds have largely come off and Dabur is looking at increasing ad-spends from 5.6% (FY23) to earlier levels (gradually) to support brands. Recovery in rural markets is a key to accelerate sales growth, as this segment reaps 50% of revenues. We believe scalable opportunities in Badshah, Beverages, new launches like baby care and brand extensions hold key to medium term growth. Moreover focus on cost reductions through higher freight optimisation, lower distance to market, multiple vendors for raw material/cartons etc. will help remove costs from the system and improve profitability. We estimate 15.4% earnings per share compound annual growth rate over FY23-25E and arrive at discounted cash flow based target price of Rs 600 (45.6 times June-25 EPS). Dabur trades at 43.0 times June-25 EPS with 21.2% return one equity and 50% dividend payout. Retain ‘Accumulate’..Click on the attachment to read the full report:.Dabur India - Intent To Grow Faster Is Commendable; Fair Valuation Limits Upside: Nirmal Bang.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dabur India - Sustained Focus On Innovations, New Product Development: Prabhudas Lilladher

Healthcare, home and personal care projected revenue at ~Rs 50/70 billion by FY28.

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Dabur India - Sustained Focus On Innovations, New Product Development: Prabhudas Lilladher

Healthcare, home and personal care projected revenue at ~Rs 50/70 billion by FY28.

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