Buy Dabur India, target price Rs 660: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Dabur India with a target price of Rs 660. The current market price of Dabur India is Rs 567.75.

Dabur India, incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 100350.32 Crore) operating in FMCG sector.

Dabur India key Products/Revenue Segments include Personal Care, Other Operating Revenue and Scrap for the year ending 31-Mar-2023.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 3240.25 Crore, up 15.78 % from last quarter Total Income of Rs 2798.52 Crore and up 10.85 % from last year same quarter Total Income of Rs 2922.98 Crore. Company has reported net profit after tax of Rs 456.81 Crore in latest quarter.

Investment Rationale
Given the healthy earnings growth outlook, the stock is currently trading at 43xFY25E EPS, a 20%/25% discount to its historical three/five-year averages. The brokerage maintain its BUY rating on the stock with a TP of INR660, valuing the company at 50x FY24E P/E.

Promoter/FII Holdings
Promoters held 66.23 per cent stake in the company as of 30-Jun-2023, while FIIs owned 19.39 per cent, DIIs 8.67 per cent.