Dabur Aims for Double-Digit Growth with Six-Pillar Strategy
Dabur India Limited is targeting double-digit growth in the medium term, driven by its six-pillar strategy. The company expects its Healthcare and Food & Beverages (F&B) businesses to double over the next four to five years. Dabur’s operating profit margin (OPM) is expected to improve to 19.5% in FY2024, driven by deflation in key input prices. However, the OPM is expected to exceed 20% in FY2025, led by operating efficiencies, premiumisation, and efficient buying.
Outlook
We maintain our Buy rating on Dabur India Limited with a revised price target of Rs. 660. The stock is currently trading at 46.3x and 38.6x its FY2024E and FY2025E earnings.
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