Buy Dabur India, target price Rs 560: Geojit

Geojit has buy call on Dabur India with a target price of Rs 560. The current market price of Dabur India is Rs 498.6.
Time period given by analyst is one year when Dabur India Ltd. price can reach defined target.

Dabur India Ltd., incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 88569.61 Crore) operating in FMCG sector.


Dabur India Ltd. key Products/Revenue Segments include Personal Care, Other Operating Revenue and Scrap for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2616.95 Crore, down -13.87 % from last quarter Total Income of Rs 3038.49 Crore and up 8.06 % from last year same quarter Total Income of Rs 2421.77 Crore. Company reported net profit after tax of Rs 295.54 Crore in latest quarter.

Investment Rationale
Market share across all segments is increasing. However, inflationary trend in raw materials costs are expected to weigh on company’s margins in the short-medium term. THe brokerage upgrades to Buy with a revised TP of Rs. 560 based on 42x FY24E EPS considering recent sharp fall in the stock price.

Promoter/FII Holdings
Promoters held 67.38 per cent stake in the company as of 31-Mar-2022, while FIIs owned 20.43 per cent, DIIs 3.83 per cent.