Buy Dabur, target price Rs 675: Motilal Oswal Financial Services

Motilal Oswal Financial Services has a buy call on Dabur India with a target price of Rs 675. The current market price of Dabur India is Rs 505.75. Dabur, incorporated in 1975, is a Large Cap company with a market cap of Rs 90334.71 crore, operating in the FMCG sector.

Dabur India Ltd. key Products/Revenue Segments include Personal Care, Other Operating Revenue and Scrap for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 3180.11 crore, down -8.58% from last quarter Total Income of Rs 3478.51 crore and down -4.22% from last year same quarter Total Income of Rs 3320.25 crore. The company has reported net profit after tax of Rs 417.28 crore in the latest quarter.

The company's top management includes Mr.Mohit Burman, Dr.Ajay Dua, Dr.S Narayan, Mr.R C Bhargava, Mr.P N Vijay, Mrs.Satyavati Berera, Mr.Rajiv Mehrishi, Mrs.Falguni Sanjay Nayar, Mr.Ajit Mohan Sharan, Mr.Mukesh Butani, Mr.Amit Burman, Mr.Aditya Burman, Mr.Mohit Malhotra, Mr.P D Narang, Mr.Saket Burman, Mr.Romesh Sobti. Company has G Basu & Co. as its auditors. As on 30-09-2024, the company has a total of 177 crore shares outstanding.

Investment Rationale
The Dabur India management expects consolidated revenue to grow in low single digits (estimated. ~3% YoY in 3QFY25; -6% YoY in 2QFY25 and 7% in 3QFY24). Inflationary pressure was witnessed in some segments, which was partially mitigated through tactical price increases and cost-efficiency initiatives. The management expects flat growth in operating profit. The international business is expected to register double-digit growth in cc terms, led by good momentum in MENA, Egypt, Bangladesh and the US.

Promoter/FII Holdings
Promoters held 66.25 per cent stake in the company as of 30-Sep-2024, while FIIs owned 15.05 per cent, DIIs 13.44 per cent.