Dabur India (Dabur) reported sales growth of 6.4% and EBITDA decline of 10% YoY. While pre-quarterly release did mention margin decline, the expectation was that it would largely be in the International business. However, even standalone EBITDA declined 8% for reasons that are not fully understand. Moreover, EBITDA margin guidance for FY24 was muted, which was a key negative in the call. The company mentioned they would target 19-19.5% EBITDA margin in FY24, which comes as a surprise given that they had reported 19.8% in first-3 quarters. The company has discontinued 180 SKUs, which did not receive good response in the market. With secondary sales growth at 10% this quarter, double-digit, top-line growth seems likely in future, and the worst seems to be behind.
With continued focus on developing categories and strong ambitions in the Foods space, with Badshah and Homemade, analysts at IIFL Capital Services believe that Dabur should be on the growth path soon. However, the stock may be weak in near term.
Analysts at IIFL Capital Services have cut their EPS estimates by 8%/6% for FY24/FY25 and have maintained their Buy recommendation on the stock with a price target of Rs. 590.
Related Tags
Invest wise with Expert advice
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.