Buy Dabur India, target price Rs 665: Edelweiss

Buy Dabur India, target price Rs 665:  Edelweiss

Edelweiss has buy call on Dabur India Ltd. with a target price of Rs 665. The current market price of Dabur India Ltd. is Rs 535.1.

Dabur India Ltd., incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 94822.11 Crore) operating in FMCG sector.

For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 2516.04 Crore, up 27.07 % from last quarter Sales of Rs 1979.98 Crore and up 13.75 % from last year same quarter Sales of Rs 2211.97 Crore Company reported net profit after tax of Rs 483.19 Crore in latest quarter.

Investment Rationale
Considering the multiple structurally positive levers coming in place for the company the brokerage revises up target multiple to 55x (from 50x) and arrive at a revised TP of INR 665 and maintain ‘BUY/SO’. The stock is trading at 46.1x FY22E EPS.

Promoter/FII Holdings
Promoters held 67.9 per cent stake in the company as of June 30, 2020, while FIIs held 17.6 per cent, DIIs 7.4 per cent and public and others 7.1 per cent.

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