Dabur India Q4 Results Review - Rural Demand Bounces Back: Prabhudas Lilladher

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Dabur India Ltd. has given cautiously optimistic outlook for FY25 led by-8% growth in rural sales (~50% of domestic sales),strong performance across oral care, Home care with market share gain across categories andinnovations and distribution led gains. Dabur expects volume/realisation growth to enable high single digit to low double sales growth with calibrated margin expansion. International business continues to face currency led headwinds while Namaste litigation expenses are likely to peak out (Rs 800-900 million in FY25)..We believe harsh summer will provide tailwind to Juices/ drinks/ Glucon-D while normal monsoons will boost rural demand and tame inflation. We believe sustained innovation, premiumisation and launches in core segments like healthcare, oral care and home and personal care will help sustain double-digit growth. We increase our FY25/FY 26 earnings per share estimates by 1.4%/1.8% and estimate 12.8% EPS compound annual growth rate over FY24-26. Dabur is trading at 39.7 times March-26 EPS. We arrive at discounted cash flow based target price of Rs 563 (Rs 535 earlier) which implies a price-to-earning of 42.5, in line with LTA. Retain Accumulate for moderate returns..Click on the attachment to read the full report:.Dabur India Q4 Results Review - Maintain As Our Preferred Pick For FY25: Yes Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dabur India Q4 Results Review - Rural Demand Bounces Back: Prabhudas Lilladher

Rural sales up 8%, urban grew 4%, showing consistent trend after three years

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