Dabur exhibited mixed segmental performance across segments - In HPC, skin care posted 8.0% growth, while home care posted flattish growth. However, hair care/oral care de-grew by 4.6/5.2%. In healthcare segment, digestives/ health supplements/OTC & Ethical de-grew by 2.1/8.4/3.6%. Moreover, food and beverages de-grew by 9.2%, while foods/Badshah grew by 14.2/6%. Going ahead, Dolat Capital believes that most segments will continue to gain market share with increasing penetration and Dabur’s reach in rural markets.
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Dolat Capital Report
Dabur India Ltd.’s Q4 FY25 revenue and Ebitda were in line with our estimate. Revenue (cons) grew by 0.6%, while domestic business posted 3.7% sales de-growth due to subdued demand conditions. The home and personal care/healthcare/beverages business registered de-growth of 3.3/4.7/9.2%, while the food business grew by 14.2%. A five-year revenue CAGR stood at 8.7%. Badshah posted value/volume growth of 6/11%.
International business posted 19.3% growth in constant currency terms led by 36.0/23.4/22.3/13.4/22.0% growth in Egypt / Turkey /MENA /Namaste /Bangladesh respectively.
We have downward revised our FY26/27E EPS estimates by 7.2/8.2% at Rs 11.4/12.5 to factor in Q4 performance and gradual recovery compared to the earlier estimate of faster recovery.
Going ahead, we anticipate improvement in rural markets driven by increased government spending and favorable base. Valuing the stock at 45x FY27E EPS we have arrived at a target price of Rs 562. Considering the recent fall in stock price and anticipated recovery, we upgrade to ‘Buy’.
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