Dabur - Aiming To Penetrate Bharat Markets: Centrum Broking

Healthcare recovery underway; poised for long term growth..

<div class="paragraphs"><p>Dabur Red toothpaste. (Source: Company website)</p></div>
Dabur Red toothpaste. (Source: Company website)

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Centrum Broking Report

We attended ‘Capital Markets Day - Analyst meet’ organized by Dabur India Ltd. The company reported consolidate/standalone four-year revenue compound annual growth rate of 7.8%/8.5%, yet its recent performance was bit volatile.

Riding on rising consumer preference for Natural products(69.1%), Dabur aim to embark on the journey build penetration, using its ayuverda heritage backed by scientific claims.

Dabur has identified six strategic pillars,

  1. winning portfolio and innovation,

  2. fit for purpose go-to-market,

  3. building capabilities and culture,

  4. operational excellence,

  5. digitisation, and

  6. profitability enhancement.

Targeting younger population it has tripled its total addressable market (1.2 trillion) and retooled its strategy Dabur 2.0, moving from power brands to power platforms with emphasis on stronger scientific claims.

Using digital transformation it aims to increase penetration thorough new age formatsdriving distribution efficiency. Its operating model changing to more agile and accountable business units.

Management guided,its Ebitda marginsinched up and settle in the range of 19-20% in FY24. We retain 'Buy' rating with discounted cash flow-based target price of Rs 638 (implying 46.2 times FY25E earnings per share).

Click on the attachment to read the full report:

Centrum- Dabur India - Company Update.pdf
Dabur India - Expansion Into Adjacencies Through Power Platform To Drive Faster Growth: ICICI Securities


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