Dabur India Ltd.

September 24, 2016 . Equities Desk

Set to ride the herbal wave

Dabur India Ltd. (Dabur), the leading Indian FMCG company, is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. It operates in key consumer product categories like hair care, oral care, health care, skin care, home care and foods.

Valuations & View

Dabur is better placed than peers given its differentiated offerings, leadership position & distribution reach. We expect revenue & PAT to grow at a CAGR of 9% & 14% respectively over FY16-18E. Further, EBITDA margin is expected to improve by 130bps to 19.3% on account of new product launches & continued focus on premium products. We initiate Dabur with a BUY rating with a TP of Rs322 at 35x FY18E EPS.

Research Report Dabur India Ltd

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