Sharekhan has given Buy recommendation for Dabur India with a target price of Rs. 675 in its research report issued on May 06, 2021
Sharekhan’s research report on Dabur India
Dabur India Limited’s (Dabur) domestic volume growth stood at 25% in Q4FY2021, lower than our as well street’s expectation of 30%-35%. OPM stood flat at 18.9%; PAT grew by 27% to Rs. 377.9 crore (lower than street expectation of Rs. 425 crore). CRS implementation resulted in inventory correction due to lesser pre-season stocking up with distributors, leading to lower revenue by ~Rs. 100 crore-120 crore. Q4 is seasonally a soft quarter for winter-related healthcare products (including Chyawanprash), leading to lower growth. Supply-led disruption might affect near-term performance. Health supplements and ethical regaining momentum, discretionary categories to see moderation.
We have reduced our estimates for FY2022 by 7%, while we have fine-tuned them for FY2023. We maintain Buy with a PT of Rs. 675.