Dabur India - Reinforcing Its Leadership Position In Key Markets: Dolat Capital

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.We attended the Capital Markets Day of Dabur India Ltd. The management iterated its key strategic pillars which focuses on reinforcing its leadership position in key markets through -Winning portfolio and innovation,fit for purpose go-to-market,building capabilities and transforming cultureoperational excellence,digitalisation and profitability enhancement..Key highlights of the interaction are as follows:Decent performance in unprecedented environment.Dabur posted revenue of Rs 115.3 billion, up 5.9% on a YoY basis, supported by 6.2/11.1% growth from India/ International markets. However, Ebitda margin contracted by 190 basis points YoY to 18.8% as a result of unprecedented material inflation. Going ahead, Dabur has guided for Ebitda margin of ~19.5% in FY24E. Furthermore, the company would re-invest ~100- 125 bps improvement in gross margin towards advertising and promotion spends and digital initiatives.Relentless focus on power brandsDabur’s fast moving consumer goods portfolio includes nine power brands, with eight power brands in India and one in international market. Dabur has ~23 brands above Rs 1 billion category, of which 17 brands are under Rs 1-5 billion. These brands are expected to scale up in the coming years and would garner revenue of Rs 5 billion plus. Out of the 17 brands, the company is focusing on scaling up Hajmola (revenue of Rs 3.5-4 billion) with the goal of making it a power brand.Robust distribution networkDabur has 22 manufacturing facilities of which 14 are in India and eight are in the overseas market. Dabur has the widest distribution networks spanning across urban and rural markets, covering ~7.9 million retail outlets. Furthermore, it is available in over 120 countries. In FY23, the company has crossed presence across 100,000 village and it would focus on further enhancing its rural footprints, going ahead..Click on the attachment to read the full report:.HUL - Growth Lagging Expectation: HDFC Securities.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dabur India - Reinforcing Its Leadership Position In Key Markets: Dolat Capital

Decent performance in unprecedented environment, relentless focus on power brands.

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