Buy Dabur India, target Rs 322: Geojit BNP Paribas Financial Services

Geojit BNP Paribas Financial Services has a buy call on Dabur India Ltd. with a target price of Rs 322. The current market price of Dabur India Ltd. is rs 278.85. Time period given by analyst is year, when Dabur India Ltd. price can reach defined target. Geojit BNP Paribas says Dabur, a leading Indian FMCG company, is better placed than peers given its differentiated offerings, leadership position & distribution reach. It has carved a niche through focused product differentiation brought about by ANH (ayurvedic, natural & herbal) and is set to gain from increasing preference for these products. The company also has the widest distribution network among FMCG companies, and is poised to benefit from revival in rural growth (contributing ~45% to sales) led by better monsoon. Geojit BNP Paribas expect revenue & PAT to grow at a CAGR of 9% & 14% respectively over FY16-18E and factor 130bps increase in EBITDA margin by FY18E driven by new premium offerings & prudent cost management.