Dabur India Ltd Share Price Target 2024, 2025 to 2030

Dabur India stands tall among the premier players in the fast-moving consumer goods (FMCG) sector, renowned for its diversified portfolio spanning consumer care and food products. As of the 2020-03 Annual Report, it ranks as the fourth largest FMCG Company in India and holds the distinction of being the world’s largest Ayurvedic and Natural Health Care Company, boasting an extensive array of over 250 Herbal/Ayurvedic products.

The company operates across distinct business segments, with Home & Personal Care constituting 47% of FY22 revenues. Notably, Dabur shines in categories like Home Care, Personal Care (encompassing Hair Care, Oral Care, Skin Care, and Hygiene Products), Healthcare (~36%), and Food & Beverages (~17%). Dabur’s success is marked by its market leadership in various segments, with substantial market shares in health supplements, oral care, hair oil, and fruit juices.

Beyond domestic borders, Dabur’s presence spans across 120 countries, dominating markets in Asia, America, Europe, Africa, and the Middle East. With 13 manufacturing locations in India and 8 facilities globally, Dabur’s expansive distribution network, encompassing over 3.2 million retail outlets, ensures its strong presence in both urban and rural areas.

The company’s growth is amplified by a robust R&D infrastructure, marked by substantial investments and an extensive global intellectual property rights portfolio. Dabur’s strategic acquisitions and consistent commitment to innovation underscore its evolution as a powerhouse in the FMCG landscape. Looking ahead, Dabur continues to fortify its position, with significant capital expenditure and ambitious investment plans earmarked for future growth.

1. Sales growth, compounded annually, stands at 7%, reflecting consistent but moderate revenue expansion over time.
2. The company witnessed a negative compounded annual growth rate (CAGR) in profits, standing at -3%.
3. Stock price compounded annual growth rate (CAGR) over one year amounted to -1%, indicating stagnant or declining market performance.
4. Return on equity metrics indicate a healthy dividend payout of 52.1%, ensuring investor returns.
5. However, the stock is trading at 10.6 times its book value, suggesting a potential overvaluation concerning tangible assets.
6. The company’s sales growth over the past five years has been lackluster, standing at 8.35%, indicating a slow trajectory.
7. Despite this, the company stands among the top FMCG firms in India, reflecting a substantial 140% improvement in the Dow Jones Sustainability Index (DJSI) score.
8. Notably, the company witnessed a robust stock price growth of 19% in the previous year.

1. Consolidated revenue surpassed INR 6,000 crore, achieving a 9% 4-year CAGR, propelled by an 11.6% CC growth.
2. India Business revenue reached INR 4,682 crore, growing at 5.3%, maintaining a 10% 4-year CAGR.
3. Consolidated operating profit surged to INR 1,266 crore, showcasing a 10.6% growth and a 20% operating profit margin.
4. Reported PAT after minority interest reflected a 5.2% growth, excluding legal costs and Badshah amortization, exhibiting a 14.4% growth.
5. Domestic FMCG business witnessed vertical growth, with Healthcare and Home & Personal Care each growing by 8% and 9%, respectively.
6. The Food & Beverage segment showcased robust growth at 14.7% over a 4-year CAGR, marking significant progress.
7. H1 FY24 displayed consistent growth across segments, reinforcing a positive trajectory in revenue and profitability.
8. Overall, the performance highlights for Q1 FY2024 indicate steady growth and strategic advancements across key business verticals.

Shareholding Pattern

The projected share price targets for Dabur India Ltd in 2025 depict a consistent upward trajectory, reflecting an optimistic outlook for the company. The expected prices range between ₹727.51 to ₹869.55 throughout the year, showcasing an incremental climb.

The highest prices for each month indicate a steady ascent, peaking at ₹869.55 in December, while the lowest prices exhibit minor fluctuations, with January at ₹559.62. This upward trend in projected prices reflects growing investor confidence and positive market sentiment, potentially influenced by strong fundamentals and strategic maneuvers.

Factors contributing to this optimistic projection may include Dabur’s robust market position, diversified product portfolio, and sustained financial performance. The anticipated prices indicate a favorable trajectory for the company, aligning with potential industry growth and investor expectations. This optimistic outlook hints at Dabur’s potential to leverage its strengths and capitalize on market opportunities in the coming years.

Dabur India Ltd has displayed a consistent growth trend over the last five years, showcasing a progressive increase in sales and profitability. However, recent figures indicate a nuanced trajectory warranting closer examination.

Between March 2019 and March 2023, the company experienced a steady rise in sales, reaching ₹12,055 million in the trailing twelve months (TTM). This expansion in revenue is reflected in the operating profits, maintaining a 19-21% operating profit margin (OPM), albeit exhibiting a slight decline in the most recent periods, possibly due to escalating expenses.

Despite an increase in other income sources and sustained profitability, rising depreciation and interest costs seem to have impacted the bottom line. Net profits, while maintaining a positive trend, exhibit a marginal dip in the latest period, standing at ₹1,733 million in TTM.

Moreover, the dividend payout ratio has incrementally risen to 54% in the recent period, signifying the company’s commitment to distributing profits among shareholders.

The spike in expenses, particularly evident in the last two years, might be attributed to various factors such as increased operational costs, marketing initiatives, or inflationary pressures. The rising interest and depreciation costs might indicate higher investments or capital expenses.

Overall, while Dabur India Ltd’s sales and operational profitability continue to show resilience, a closer evaluation of cost management strategies and sustained revenue growth becomes imperative to ensure consistent profitability and shareholder value in the future.

FAQS

1. What does Dabur India Ltd specialize in? Dabur India is a leading consumer goods company, specializing in health care, personal care, and food products. It’s renowned for its Ayurvedic offerings.
2. What is Dabur India’s market cap and current stock price? Dabur India’s market cap stands at ₹1,00,962 Crores, and the current stock price is ₹570 (as of the latest update).
3. How has the stock price fluctuated recently? The stock has fluctuated between ₹597 (high) and ₹504 (low) in recent trading periods.
4. What is the Price-to-Earnings (P/E) ratio of Dabur India Ltd? The stock’s P/E ratio is 58.2, indicating the valuation compared to the company’s earnings.
5. What is the Dividend Yield of Dabur India Ltd? Dabur offers a dividend yield of 0.91%, reflecting the dividends paid to shareholders concerning its stock price.
6. What are the Return on Capital Employed (ROCE) and Return on Equity (ROE)? The ROCE stands at 22.7%, signifying the efficiency of capital use, while the ROE is 19.5%, reflecting profitability concerning shareholder equity.
7. What is the Face Value of Dabur India Ltd’s stock? Dabur India’s stock has a face value of ₹1.00.
8. Where can I find more information about Dabur India Ltd? For more detailed financials, company updates, and investor-related information, you can visit their official website at dabur.com. Additionally, stock-specific data can be found on BSE (500096) and NSE (DABUR).