Shares of Dabur India will in focus today, July 30 after the consumer durables company announced April-June quarter results for fiscal 2027. The FMCG firm's consolidated net profit rose 15% to Rs 591 crore in the quarter from Rs 514 crore in the corresponding period last year.
Dabur's revenue surged 10.5% to Rs 3,764 crore for the quarter on June 30, from Rs 3,405 crore in the year-ago period. In terms of operation, Ebitda (earnings before interest, taxes, depreciation and amortisation) was up 10.9% to Rs 741 crore from Rs 668 crore in the previous fiscal. The Ebitda margin contracted to 19.7% from 19.6%.
Brokerages largely maintained their existing ratings on Dabur after June quarter results, with most highlighting margin performance, stronger rural demand, while cautioning on inflation, competitive intensity and demand volatility. Macquarie retained 'Neutral' rating on Dabur at a target of Rs 470, marking an upside of 8.3% from its current market price. Citing in-line results, Jefferies maintained 'buy' at a target price of Rs 610, upside of 40%. Highlighting capital allocation and M&A optionality a key driver for growth,Goldman Sachs retained neutral coverage and cut target price to Rs 485 (11% upside) from Rs 515. Flagging geopolitical risks and inflation, Morgan Stanley maintained underweight at a target price of Rs 425, a downside of 2%.
Macquarie on Dabur
- Maintain Neutral with target price of Rs 470
- In-line Q1; FY27 targets reiterated
- Management's confidence in driving sequential improvement in sales growth was encouraging
- Remain concerned about the continued growth volatility in beverages
- Worry about company's ability to balance market share and profitability in categories with high competitive intensity in India
Jefferies on Dabur
- Maintain Buy with target price of Rs 610
- A Broadly Inline Result
- Rural outpaced urban, but the gap is narrowing
- Despite cost pressures, Dabur managed to protect EBITDA margins
- Mgmt sounded somewhat cautious on volume growth due to high inflation
- Stock trades at a significant discount to peers & remains a dark horse
Goldman Sachs on Dabur
- Maintain Neutral; Cut target to Rs 485 from Rs 515
- In-line performance with PAT growing faster than revenue
- HPC and Foods Lead, Beverages Recovering post rains in April
- International Business was a tailwind
- Capital Allocation and M&A Optionality a key driver for growth
Morgan Stanley on Dabur
- Maintain Underweight with target of Rs 425
- Q1: In Line; Guidance Reiterated
- Management believes double-digit profitable growth is possible, if conflict ceases tomorrow
- Dabur saw 8% inflation in Q1, mitigated via pricing actions
- Management remains watchful of geopolitical risks and inflation
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