Dabur India
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Dabur India Limited is strategically enhancing its growth trajectory through manufacturing expansion, digital innovation, and sustainability initiatives, which are expected to bolster revenue and margins. Management's focus on premiumization and market share gains, particularly in the Hair Care and Foods segments, aligns with Vista's forecast of stable revenue growth and margins. The company's commitment to achieving 80% reusable packaging by FY 2025-26 and its recent acquisition of a minority stake in RAS Beauty are pivotal for long-term growth. However, challenges such as geopolitical tensions affecting international operations and inflationary pressures on input costs could impact profitability. The personal care industry is witnessing improving pricing power, which supports Dabur's margin outlook. Over the next 12-24 months, key opportunities include expanding e-commerce channels and premium product offerings, while watchpoints include managing input cost inflation and geopolitical risks. Overall, Vista's expected upside of approximately 14.7% reflects confidence in Dabur's strategic initiatives and market positioning
Why We Like This Stock
- Dabur's strategic focus on premiumization and innovation is expected to drive revenue growth and enhance market share
- The company's commitment to sustainability and digital transformation positions it favorably for long-term growth
- Strong rural demand and effective capital allocation strategies are likely to support margin stability
Things To Watch Out For
- Geopolitical tensions, particularly in the Middle East, pose risks to international revenue streams
- Inflationary pressures on raw materials could impact profit margins despite pricing power
- Unseasonal weather patterns may disrupt sales in seasonal product categories
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 12,404 | 12,563 | 13,193 | 13,917 | 15,058 |
| Profit Before Tax (Cr.) | 2,358 | 2,249 | 2,435 | 2,657 | 2,916 |
| PBT Margin | 19.0% | 17.9% | 18.5% | 19.1% | 19.4% |
| Net Profit (Cr.) | 1,818 | 1,751 | 1,881 | 2,046 | 2,214 |
| Earnings Per Share | 10.4 | 10.0 | 10.7 | 11.4 | 12.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| JPMorgan | ► Neutral | 425 | 16-Sep-2026 |
| Kotak Securities | ▲ Buy | 430 | 16-Sep-2026 |
| Anand Rathi | ▲ Buy | 550 | 30-Jul-2026 |
| Elara Capital | ► Accumulate | 530 | 30-Jul-2026 |
| Emkay Global | ► Add | 470 | 30-Jul-2026 |
| Goldman Sachs | ► Neutral | 485 | 30-Jul-2026 |
| HDFC Securities | ► Add | 465 | 30-Jul-2026 |
| HSBC | ► Hold | 470 | 30-Jul-2026 |
| ICICI Securities | ► Add | 500 | 30-Jul-2026 |
| Jeffries | ▲ Buy | 610 | 30-Jul-2026 |
| Macguire | ► Neutral | 470 | 30-Jul-2026 |
| Moneycontrol | ▲ Overweight | nan | 30-Jul-2026 |
| Morgan Stanley | ▼ Underweight | 425 | 30-Jul-2026 |
| Nomura | ▲ Buy | 625 | 30-Jul-2026 |
| Prabhudas Liladhar | ► Hold | 492 | 30-Jul-2026 |
| Citigroup | ▼ Sell | 425 | 06-Jul-2026 |
| Axis Securities | ▲ Buy | 550 | 08-May-2026 |
| BPWealth | ▲ Buy | nan | 08-May-2026 |
| Investec | ► Hold | 514 | 08-May-2026 |
| Motilal Oswal | ► Neutral | 745 | 08-May-2026 |
| UBS | ► Hold | 520 | 08-Apr-2026 |
Company Overview
Show Company Profile
Dabur India Limited operates as a fast moving consumer goods company worldwide. It operates through Consumer Care Business, Foods Business, Retail Business, and Other segments. The company provides health supplements under the Dabur Chyawanprash, Dabur Honey, and Dabur Glucose brand name; digestive products under the Hajmola, Pudin Hara, Hingoli, Dabur Nature Care, and Sat Isabgol brands; cough and throat products under the Dabur Honitus brand name; baby care products under the Dabur Lal Tail; ayurvedic health juices; rejuvenators under the Dabur Shilajit brand name; Women's Health Tonics; and nutraceuticals under the Siens brand name, as well as Ayurvedic Ethicals. It also offers hair care products comprising hair oil and shampoo under the Dabur Amla, Vatika, and Dabur Almond brands; oral care products that includes toothpastes, gels, and toothpowders under the Dabur Red Paste, Dabur Babool, Meswak, Dabur Herb'l, and Dabur Lal Dant Manjan brands; skin care products, including rose water, moisturising creams and lotions, soaps, body wash, toners, facial bleaches, and depilatory creams under the Dabur Gulabari and Fem & OxyLife brand names; and home care products, such as air fresheners under Odonil name, mosquito repellents under the Odomos brand, and floor and toilet cleaner products under the Sanifresh brand name. In addition, the company provides beverages under the Réal and Réal Activ brand names; foods under the Dabur and Hommade brands; and spices under the Badshah brand, as well as edible oils and ghee which includes Dabur Cold Pressed Mustard, Sesame and Groundnut Oils, Virgin Coconut Oil, and Dabur 100% Cow Ghee. Further, it offers Guar gum, pharma, and other products. The company also operates specialized beauty retail stores that offer a range of cosmetics, fragrances, skin care, and personal care products, as well as beauty and fashion accessories under the NewU brand name. Dabur India Limited was founded in 1884 and is based in Ghaziabad, India.