Dabur-India-Ltd-CMP

Dabur India Ltd is the largest Ayurvedic and natural health care company in the country with a portfolio of over 400 products. With its wide distribution network, covering 6.7 million retail outlets, and presence across urban and rural markets, Dabur products are among the most trusted brands in the country offering holistic health and well-being. Its brands are highly popular in the Middle East, Africa, SAARC countries, US, Europe and Asia. Dabur’s overseas revenues account for 28.2% of the total turnover.

Stock Details

Market Cap. (Cr.) 83960.96
Face Value 1.00
Equity (Cr.) 176.74
52 Wk. high/low 528.00/385.05
BSE Code 500096
NSE Code DABUR
Book Value (Rs) 37.38
Industry FMCG
P/E 60.68

 

Share Holding Pattern %

Promoter

67.87
FIIs 17.96
Institutions 7.42
Non Promoter Corp. 0.56
Public & Others

Government

6.20

0.00

Total 100.00

Price-ChartKey Investment Parameters:

  • Dabur health supplement business grew by 52.6% in Q1FY21, led by 7x surge in sales of Dabur Chyawanprash, strong double-digit growth in Dabur Honey. Dabur Chyawanprash and Dabur Honey saw an increase of around 600 basis points and 300 basis points in their market share.

  • OTC business reported a strong growth of 34.4% in Q1FY21 on back of robust performance of Honitus and NPDs like Tulsi Drops, Haldi Drops, Ashwagandha tablets, Dabur Immunity Kit, etc. The Ethical business also performed very well, reporting a 10.7% growth on back of strong demand for immunity boosting products such as Ashwagandha, Giloy Ghan Vati.

  • Dabur Oral care segment grew 1.5% YoY in Q1FY21 on account of relative strong growth seen in Toothpaste category (up 3% YoY) and market share gains up 60 bps YoY. Dabur launched Dant Rakshak in markets where brand equity of Dabur is weak at attractive pricing (Rs 40 vs Dabur Red which is available at Rs 50).

  • Dabur markets toilet cleaning products under the brand Sanifresh. The company launched a 150ml pack of the brand targeting rural markets. This ` 20 pack, is being marketed as value pack in rural India where demand for branded toilet cleaning products is on the rise in the wake of the government’s Swachh Bharat Mission.

  • Recently launched products such as Dabur Sanitize Hand Sanitizers and the cleaning and disinfectant range under Dabur Sanitize and Dazzl brands posted a strong performance in Q1FY21.

Outlook:

Key factor driving the Indian ayurvedic products market is increasing popularity of natural and herbal medicines and their benefits among the consumers. Factors such as rising health concerns and awareness about the side-effects of western medicines is further driving the consumer preference for Ayurvedic products in the country.  Dabur invested ahead of the curve in expanding its rural coverage, which helped it drive growth even during the slowdown. It increased its rural network to cover 52,298 villages by end of FY20, up from 44,068 villages in March 2019. We believe the opportunity in immunity boosting products is more structural & leadership position in Chawayanprash & Honey works as advantage for Dabur India. Therefore we initiate on Dabur India for the Target price of Rs.610.

DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

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