Motilal Oswal - Dabur India Limited (DABUR) MOSL: DABUR (Neutral)-Another year of muted earnings/sales growth-Fair valuations cap upside

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Motilal Oswal

Krishnan Sambamoorthy

EUR 120.00 For Business Accounts Only

MOSL: DABUR (Neutral)-Another year of muted earnings/sales growth-Fair valuations cap upside

Dabur: Another year of muted earnings/sales growth; Fair valuations cap upside

(DABUR IN, Mkt Cap USD9.7b, CMP INR382, TP INR415, 9% Upside, Neutral)

sales grew 4.7% YoY to INR21.3b (our estimate: INR22.2b) in 4QFY19. EBITDA was down 5.8% YoY to INR4.6b (our estimate: INR5b), while adj. PAT increased 8.7% YoY to INR4.3b (our estimate: INR4b). Domestic FMCG business grew 6%, with underlying volume growth of ~4.3% (our estimate: +6%).
FY19 performance: Sales, EBITDA and adj. PAT grew 10.1%, 7.6% and 9.3%, respectively. EBITDA margin shrank 50bp YoY to 20.4%.
Concall highlights: DABUR is targeting high-single-digit volume growth in India FMCG in FY20, with 2-3% realization growth.

03/05/2019 1 EN

Underlying

Dabur India Limited

Dabur India is engaged in manufacturing, marketing and distributing consumer goods and its related products. Co.'s products include hair care, oral care, health supplements, digestives and candies, baby and skin care, fruit juices, cooking pastes and sauces. Co.'s brand names include Dabur, Asavs, Classicals, Dabur Shilajit, Naturecare, Shankhpushpi, Honitus and Ring Ring. Co. operates three business divisions: Consumer Care Division, Consumer Healthcare Division and the wholly owned subsidiary, Dabur Foods Limited.

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INE016A01026 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Analysts

Krishnan Sambamoorthy

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MOSL: DABUR (Neutral)-Another year of muted earnings/sales growth-Fair valuations cap upside

MOSL : DABUR: In line, margin to improve with a lag

DABUR INDIA sees an upgrade to Slightly Positive due to a better fundamental star rating

MOSL: DABUR (Buy)-Result better than expected; margin headwinds lesser than peers

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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