ICICI Direct has given Buy recommendation for Dabur India with a target price of Rs. 740 in its research report issued on Aug 04, 2021

ICICI Direct’s research report on Dabur India

Dabur is one of the bigger FMCG companies with a presence in Ayurveda based products across categories. The company has a dominant market share in health supplement, OTC & ethical products, hair oils & juices. Moreover, it is continuously gaining market share in the oral care category. The company has a total distribution reach of 6.9 million retail outlets with direct reach of 1.3 million outlets. It is expected to increase direct distribution to 1.5 million outlets in the next two years Dabur also derives ~50% of its sales through rural regions with a presence in 60,000 villages, which would increase to 80,000 villages in next two years

Outlook

We continue to maintain our BUY rating on the stock We value the stock at Rs 740 on ascribing 55x FY24 earnings multiple.

 

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