Dabur Q1 Results Review - On Par Performance: HDFC Securities

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Dabur India Ltd.’s Q1 FY25 results were in line with the preview update. Domestic volume growth, although on an improving trend, was below our estimates of 6%. Rural continues to grow faster than urban areas on the back of company-specific initiatives such as expanding the distribution network, launching affordable price point packs and the increased acceptance of Ayurveda. Dabur remains optimistic about high single-volume growth with double-digit revenue growth, led by-focus on power brands;distribution expansion drive, andpremiumisation. .Management has guided for 50 basis points Ebitda margin improvement to 20% in FY25. We remain sceptical about management guidance (have pencilled only 9% revenue growth in FY25), given our volatile past track record (6/8/7% revenue/ Ebitda and profit after tax compound annual growth rate over the past decade) and will require the support of macro tailwinds such as favorable weather conditions (given high seasonal portfolio) and normal monsoon for driving sustained momentum in rural to deliver DD revenue growth. We upgrade our target multiple from 45 times to 50 times and maintain Add with target price of 660 (50 times June-26 earnings per share)..Click on the attachment to read the full report:.Dabur Q1 Results Review - Rural Recovery Drives Robust Constant Currency Growth; Maintain Buy: Yes Securities.DISCLAIMERThis 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.

Dabur Q1 Results Review - On Par Performance: HDFC Securities

The brokerage upgrades its target multiple from 45 times to 50 times and maintain Add with target price of 660.

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Dabur Q1 Results Review - On Par Performance: HDFC Securities

The brokerage upgrades its target multiple from 45 times to 50 times and maintain Add with target price of 660.

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