Equity Reserch Report :

Dabur India Ltd.

"Celebrate Life With Science of
Ayurveda"
BSE Scrip Code: 500096 NSE Scrip Symbol: DABUR Sector : FMCG

Recommendation : HOLD
Dabur India Ltd. is one of India’s leading FMCG Companies with Revenues of over Rs. 11,530
Crores & Market Capitalization of over Rs. 96,500 Crore. Building on a legacy of quality and CMP : 571

experience of over 139 years, Dabur is today India’s most trusted name and the world’s largest Target Price : 826

Ayurvedic and Natural Health Care Company. Potential Return : 2.55%

Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products.
Dabur’s FMCG portfolio today includes eight distinct Power Brands in India: Dabur Chyawanprash, Stock Data (as on 9th August 2023)

Dabur Honey, Dabur Honitus, Dabur Pudin Hara and Dabur Lal Tail in the Healthcare Nifty 19543

space; Dabur Amla and Dabur Red Paste in the Personal Care category; and Real in the Food & 52 weeks H/L 503/610

Beverages category. Vatika is our international Power Brand. Market Cap (in Rs) 101280

Dabur today operates in key consumer product categories like Health Care, Hair Care, Oral Care, Skin Outstanding Shares (Mn) 1772

Care, Home Care, Hygiene and Food & Beverages. The ayurvedic company has a wide distribution Stock data ( As on 9 August 2023)
network, covering 7.7 million retail outlets with a high penetration in urban and rural markets. 70000 700

Dabur’s products also have huge presence in the overseas markets and are today available in over 120 60000 600
Nifty
countries across the globe. Its brands are highly popular in the Middle East, SAARC countries, Africa, 50000 500
Dabur India ltd.
US, Europe and Russia. Dabur’s overseas revenue today accounts for over 25% of the total turnover. 40000 400
⁜ Consol Revenue crosses INR 3,000 cr to close Q1 FY24 at INR 3,130 cr 30000 300
⁜ Consol Revenue CC Growth in Q1 FY24 13.3% (INR growth of 11%) 20000 200

⁜ Consol Revenue 4-year CAGR 8.3% 10000 100

⁜ India Business Revenue in Q1 FY24 INR 2,347 cr 0 0

Shareholding Pattern
⁜ India Business Revenue Growth in Q1 FY24 8%
Promoter
70% 66% 66% 66.23
⁜ India Revenue 4-year CAGR 10%
FII
60% 19% 19.39
⁜ Consol Operating Profit in Q1 FY24 INR 605 cr DII
50% 9% 8.88

⁜ Operating Profit Growth in Q1 FY24 11.2% public

40% 6% 5.51
30%
⁜ Operating Profit Margin in Q1 FY24 19.3% (6 bps increase)
19%
20%
⁜ Reported PAT after Minority in Q1 FY24 INR 464 cr
9%
10% 6%
⁜ PAT after minority excluding amortization of Badshah acquisition INR 475 cr
0%
⁜ Ex-Amortization, PAT growth of 8% Promoter FII DII public

Financial Summary
Dabur has successfully transformed itself from being a family-run business to become a professionally
managed enterprise. What sets Dabur apart is its ability to marry traditional knowledge of Ayurveda with Figures in Rs Cr. (Annual Report) 2022 2023 E 2024 E 2025 E

modern-day Science to roll out efficacious products that are tailored to suit the specific needs of
consumers across the globe. As a Promoter-owned but Professionally managed Company, Dabur has Net Revenue 10,889 12,458 14,257 16,318

always set new standards in Corporate Governance & Innovation YOY Growth(%) 14.42% 14.44% 14.46%

EBITDA 2,001 2,863 2,994 3,590

EBITDA Margin(%) 18% 23% 21% 22%

PAT 1,491 1,706 1,952 2,242

YOY Growth(%) 14.38% 14.43% 14.87%

EPS 9.81 9.64 9.73 9.68

P/E 54.49 58.50 56.50 57.50

EV/EBITDA 35.96 37.45 36.71 37.08

ROE 17.71% 18.56% 18.79% 19.00%

Source : Company Data

Concall Q1 FY24 : Key Highlights

Dabur's consolidated revenue for the quarter crossed INR3,000 crores mark to close at INR 3,130 crores and
registered constant currency growth of 13.3% and INR growth of 11%.
India business grew by 8% backed by robust double-digit growth of our healthcare and HPC portfolio.
The 4-year CAGR for the India business is 10% with near double-digit CAGR in healthcare and HPC and strong
double-digit growth in F&B business.
International business registered a growth of 20.6% in constant currency terms.

Categories

HPC portfolio recorded 11% growth during the quarter.

Oral Care portfolio grew by 13% in the quarter leading to strong double-digit 4-year
CAGR Hair Oils recorded a 10% growth and posted a strong gain in market shares of 200 basis points to
reach its highest ever level of 17.4.
Shampoos recorded a 9% growth in the quarter with 4-year CAGR at a robust 13% leading to market share
gains.

Product

Healthcare portfolio recorded a 10.5% growth, posting a 4-year CAGR of 10%.

Homecare registered a 15% growth with all the brands witnessing strong performance portfolio.
Digestive category saw a growth of 15% on back of robust performance of Hajmula franchise.
OTC portfolio grew by 24% during the quarter driven by double digit growth in Lal, Tel and Honitus.
Ethical registered a 7% growth in the quarter.

International Business

The international business has seen a strong recovery and registered a 20.6% .
onstant currency growth This was driven by robust growth across our regions with :-
Middle East, North Africa (MENA) growing by 10%, Egypt growing at 45%,
Turkey business growing at 52% and Sub Sahara business growing by 13%.

Quarter's profitability

Quarter's profitability During the quarter, we have increased our A&P investments by around 30%.
Dabur believe these media investments are essential to drive long-term sustainable growth and maintain our
market leadership.
This quarter, we recorded a market share gain in 90% of our portfolio.
Our operating profit saw a growth of 11.2%.
PAT for the quarter touched INR 464 crores, growing by 5.3% over previous year This includes amortization
related to Badshah acquisition.
The PAT growth was 8% on a like-to-like basis.

Source : Company Data

 Quarterly Result

Q1 FY24 – Performance Highlights Q1 FY24 | Domestic FMCG Growth – By Verticals Q1 FY24 | International Business Performance

6
3,500 60%
3,130 80% 75% 73%
3,000 2,822 48% 49% 70%
50%

2,500 60%
40%
50%
2,000
QI FY23 30% 27% QI FY23
26% 26% 25%
40%
1,500 QI FY23 QI FY24
QI FY24 QI FY24 30%
20% 24% 23%
1,000
544 605 20%
440 464
500 10%
10% 4%
2%
0 0% 0%
Revenue Operating Profit PAT Healthcare HPC Food & Beverage International Domestic Others

QI FY24 Constant Currency Growth % FY241 Business Highlights Home & Personal Care (HPC) QI FY241 Business Highlights - Healthcare

16% 30%
15%
14% 13% 13% 24% Growth CAGR
60% 12% 12% 25%
51% 12%
50% 46% 10% 20%
10% 9%
40% 15%
MENA 14%
8% 15% 13%
30% Egypt
Growth CAGR 11%
SSA Consol 6% 5%
20% Namaste 10% 8%
13% 4% 7%
10% 4% 6%
10% 7%
2% 5%
1%
0%
0% 0%
-3% Oral Care Hair Oils Shampoo Home Care Skin Care
-10% Health Supplements OTC Ethicals Digestive

QI FY241 Business Highlights - Food & Beverages Annual Revenue Growth Ratio

40%
35% Revenue to growth ratio
35%

30% 16% 0.144152294 0.144374617 16318.31919

0.144585229 18000
0.138786716
14% 14256.97168 16000
25%
12458.3082 14000
20% 12% 0.101274596 0.098586905 10888.68
20% Beverages 12000
10% 9561.65
Axis Title

14% 8533.05 8703.59 10000

15% 8% 7701.44 7748.34 Growth
Foods 8000
10% 6% Revenue
6000
4% 0.01998582 4000
5%
2% 0.00608977 2000
0
0%
Growth CAGR 0% 0
-5% -2% 2017A 2018A 2019A 2020A 2021A 2022A 2023E 2024E 2025E

Annual Revenue to EBITDA

Revenue to EBITDA Margin

Revenue EBITDA Margin

18000 16318.31919 0.215

0.208746648 0.209449206
16000 0.205932265 14256.97168 0.21
0.203861456
14000 12458.3082 0.205
12000 0.195929592 10888.68 0.2
9561.65
10000 8533.05 8703.59 0.195
7701.44 7748.34 0.19 0.19 0.19
8000 0.19
0.183761484
6000 0.185
4000 0.18
2000 0.175
0 0.17
2017A 2018A 2019A 2020A 2021A 2022A 2023E 2024E 2025E

Source : Company Data

 Summarised Financial Statements

QI FY24 Consolidated P&L QI FY24 Standalone P&L

Particulars Q1 FY24 Q1 FY23 Y-o-Y (%) QI FY24 QI FY23 Y-o-Y (%)

Revenue from operations 3,131 2,822 11% 2,347 2,180 8%

Other Income 110 101 9% 99 84 18%

Total Income 3,240 2,923 11% 2,447 2,264 8%

Material Cost 1,672 1,528 9% 1,304 1,228 6%

% of Revenue 53% 54% 56% 56%

Employee expense 297 270 10% 189 173 10%

% of Revenue 10% 10% 8% 8%

Advertisement and publicity 204 157 30% 167 130 28%

% of Revenue 7% 6% 7% 6%

Other Expenses 352.4 323.6 9% 224 221 2%

% of Revenue 11.30% 11.50% 10% 10%

Operating Profit 604.7 543.6 11% 462 428 8%

% of Revenue 19.30% 19.30% 20% 20%

EBITDA 714.5 644.2 11% 561 512 10%

% Of Revenue 22.80% 22.80% 0 0

Finance Costs 24.3 12.1 100% 15 7 118%

Depreciation & Amortization 96.6 67.6 43% 51 44 17%

Share of profit / (loss) of joint venture -0.2 -0.3 n.m.

Exceptional item(s) 0 0 n.m.

Tax Expenses 136.8 123.1 11% 117 111 6%

Non controlling interest -7.3 0.7 n.m.

Net profit for the period/ year 463.9 440.3 5% 350 8%

% of Revenue 4.80% 15.60% 16% 16%

Ratio Analysis

Ratio 2017A 2018A 2019A 2020A 2021A 2022A 2023E 2024E 2025E 2026E 2027E

Liquidity Ratios

Current Ratio 1.4 1.4 1.3 2.0 1.6 1.3 2.1 2.3 2.5 2.6 2.8

Quick Ratio 0.9 0.9 0.9 1.4 1.0 0.7 1.7 1.8 2.0 2.1 2.3

Growth Ratios

ROCE 25% 23% 27% 23% 22% 20% 22% 22% 22% 22% 22%

ROE 26% 23% 26% 22% 22% 18% 19% 19% 19% 19% 19%

ROA 17% 15% 17% 15% 16% 12% 13% 14% 14% 14% 14%

Leverage Ratios

Debt to Equity 0.10 0.06 0.00 0.02 0.00 0.03 0.04 0.04 0.04 0.03 0.03

Interest Coverage Ratio 25.28 27.15 26.47 31.73 57.21 45.29 47.10 47.15 53.83 61.62 68.54

Debt to Total Assets Ratio 0.06 0.04 0.00 0.02 0.00 0.02 0.03 0.03 0.03 0.03 0.02

Turnover Ratios

Inventory Turnover Ratio 4.23 3.60 3.89 3.60 3.21 3.20 3.60 3.60 3.60 3.60 3.60

Receivables Turnover Ratio 11.84 10.97 10.24 10.69 17.03 16.85 12.32 13.53 14.55 14.08 13.57

Payables Turnover Ratio 2.31 2.28 2.39 2.52 2.09 2.36 2.29 2.29 2.28 2.25 2.29

Source : Company Data

 Estimated Annual Financial

Balance Sheet- Dabur Ltd. Cash flow Statement - Dabur India Ltd

As of 2017A 2018A 2019A 2020A 2021A 2022A 2023E 2024E 2025E 2026E 2027E Year ending 2023E 2024E 2025E 2026E 2027E

Cash Flow from Operations

Current Assets Net Income 1704 1950 2240 2576 2948

Cash & Cash Equivalents 305 306 328 811 1329 570 3505 4537 5686 7098 8872 Add:Depreciation & Amortization 299 342 392 448 513

Inventory 1107 1256 1301 1380 1734 1911 1419 1624 1858 2128 2436 Decrease / (Increase) in Working Capital Assets 642 -214 -264 -338 -409

Accounts Receivables 650 706 834 814 562 646 415 432 460 544 646 (Decrease) / Increase in Working Capital Liabilities 188 335 378 478 424

Short Term Investments 741 713 725 1391 746 855 886 921 960 873 899 Cash Flow from Operations 2833 2413 2746 3165 3477

Other Assets 312 458 399 484 405 334 416 408 409 394 392

Total Current Assets 3114 3440 3586 4880 4776 4317 6641 7921 9373 11038 13245 Cash Flow from Investing

Capital Expenditure (including intangibles) -498 -570 -653 -747 -856

Non Current Assets Investments in CWIP and Intangibles under development 54 -14 -13 1 2

PP&E (Including Intangibles) 1548 1617 1633 1917 1907 2057 2251 2486 2735 3038 3379 Purchase of Goodwill -85 0 0 0 0

CWIP and Intangibles under development 42 42 64 147 147 168 113 128 140 139 138 Proceeds from Disposals 9 9 7 7 8

Long Term Investments 2499 3092 2633 1397 3402 5356 3176 3193 3305 3686 3743 Investments 2148 -51 -151 -295 -82

Goodwill 411 412 336 336 336 251 336 336 336 336 336 Other -143 -51 -20 56 -4

Other Non Current Assets 118 100 184 678 279 137 276 311 336 267 265 Cash Flow from Investing 1486 -678 -829 -977 -932

Total Non Current Assets 4618 5262 4850 4474 6071 7968 6152 6453 6852 7467 7861

Cash Flow from Financing

Total Assets 7732 8702 8437 9354 10847 12284 12793 14374 16225 18505 21106 Long Term Debt (Net) 90 50 40 40 40

Short Term Debt / Revolver (Net) -417 0 0 0 0

Current Liabilities Equity Share Capital 0 0 0 0 0

Short Term Borrowings 440 464 498 304 349 617 200 200 200 200 200 Other Comprehensive Income -18 -23 -54 -46 -35

Payables 1310 1410 1455 1482 1915 2018 2233 2548 2931 3410 3834 Non Controlling Interests -36 6 4 -1 -4

Other Short Term Liabilities 474 560 707 677 670 687 660 680 675 675 675 Other long term liabilities -121 0 16 20 -1

Total Current Liabilities 2225 2434 2660 2464 2934 3323 3094 3428 3806 4285 4709 Others -31 -4 12 47 31

Dividends -850 -732 -787 -835 -801

Non Current Liabilities Cash Flow from Financing -1384 -703 -768 -775 -771

Long Term Borrowings 470 364 26 163 1 250 340 390 430 470 510

Other Long Term Liabilities 165 170 87 85 211 290 169 168 185 205 203 Total Cash Flow 2935 1031 1149 1413 1773

Total Non-Current Liabilities 636 534 113 248 213 540 509 559 615 675 714 Beginning Cash 570 3505 4537 5686 7098

Ending Cash 3505 4537 5686 7098 8872

Total Liabilities 2860 2969 2774 2712 3147 3863 3603 3987 4421 4960 5423

0.04 Series6
Equity 2024E 0.05
0.1 Unallocated other operating revenue
0.12
0.15
Equity Share Capital 176 176 177 177 177 177 177 177 177 177 177 Other segments
0.04 Retail business
Other Equity 4671 5530 5455 6429 7487 8205 9009 10200 11612 13355 15497 2023E 0.05
0.1
0.12 Food business
0.15
Non Controlling Interest 25 27 31 36 37 41 4 10 15 14 10 Consumer care business
0.04
Total Equity 4872 5733 5663 6642 7700 8422 9190 10387 11803 13545 15684 2022A 0.05
0.1
0.12
0.15

Total Liabilites and Equity 7732 8702 8437 9354 10847 12285 12793 14374 16225 18505 21106
0.48919892
2021A 0.306364503
0.347120419
0.48393976
0.094108393

Source : Company Data

-0.146697389
2020A -0.539463109 0.04515772
-0.089696421
0.138456473

-0.067001075
2019A 0.011984767
0.000241177
-0.066329481
0.034791094

0.107539683
2018A -0.079872204
0.088371686
0.055450289
0.112062837

1
0.17922321
2017A -0.146013026
-0.073148974
-0.014817142
0.013460496

-0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 1.2

 ESG Goal

Climate Change Biodiversity Social Impact Water Stewardship

• Achieve Net Zero in the entire value chain by 2045 • Ensure own manufacturing operations • Transform lives of 5 mn by 2030 a • Reduce Water Intensity in operations by

• Eliminate coal across own manufacturing units by FY25 outside Bio Endangered/protected sustainable manner 30% by FY26

• Sustainably cultivate medicinal and • Become Water Positive in own operations

• Achieve >60% Scope 1 and Scope 2 energy • Ensure 100% Afforestation equivalent to aromatic plants in 15,000 acres by 203000% and communities by 203000%
from renewable and cleaner sources by FY26 sourced critically endangered herbs by FY26

• Enhance livelihood of more than 13,500

farmers’ families by 2030

Product Responsibility Responsible Sourcing Diversity & Inclusion Circular Economy

• Progressively Reduce added sugar content in juices • Ensure zero deforestation due to high • 18% gender diversity at managerial level • 80% reusable, recyclable, or compostable

risk materials by FY26 through 100% by 2028 packaging by 2028

• Use 30%, 10%, and 5% of recycled plastic

packaging content in plastic packaging of non

•grade items for Category I,Category II, and

ESG Data Category IIIplastics, respectively, by FY26

Economic & Governance

Company Information
REVENUES AND EMPLOYEES BOARD OF DIRECTORS: ONE-TIER SYSTEM

Company Data FY 2020-21 FY 2021-22 Particular NO.

Revenues 7185 8,180 Executive Directors 2

Total Employees 5068 5122 Independent directors 8

Other non-executive directors 4

Total board size 14

Environment Disclosures

Parameter FY 21 FY2222
FY

Total weiht of all Plastic Packaging 26,834 31,456

% of recyclable plastic packaging (as a % of the

total weight of all plastic packaging) 63% 58%

Percentage of compostable plastic packaging (as a 0% 0%

% of the total weight of all plastic packaging)

Percentage of recycled content within your plastic 0% 0%

packaging (as a % of the total weight of all plastic)

Coverage (as a % ofcost of goods sold) 90% 90%

Social Disclosures
EMPLOYEE TURNOVER RATE

Huntary empoyee turnover

FY 22 FY 23 FY 22 FY 23

Breakdown by Breakdown by

Female 15% 2.5% Senior management 8% 17%

Male 18% 0.24% MS 18% 19%

Total Voluntary employee turnover rate 18% 24% FS 21% 36%

OtMrs 4% 7%

Total turnover rate 18% 24%

Source : Company Data

 Peer Comparision on Annual Stock Price

Peer Comparision on Annual Stock Price

3000 600

2500 500

2000 400 Marico

HUL
Emami
1500 300
Bajaj Consumer
Godrej Consumer
1000 200 Dabur India ltd

ll
500 100

0 0

Source : BSE india.com

Recommendation Summary

Date Brokers CMP Target

Aug-23 HDFC Securitie 566 570

Aug-23 BOB Capital Markets Ltd. 566 669

Aug-23 Axis Direct 566 610

Aug-23 ICICI Securities Limited 566 625

Aug-23 Prabhudas Lilladhar 566 600

May-23 HDFC Securities 566 560

May-23 ICICI Direct 566 675

May-23 BOB Capital Markets Ltd. 566 628

May-23 ICICI Securities Limited 566 580

May-23 Sharekhan 566 605

Source : trendlyne.com

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This information/document does not constitute an offer to sell or solicitation for the purchase or sale of any financial

instrument or as an official confirmation of any transaction. The information contained herein is obtained from publicly

available data or other sources believed to be reliable and the Author has not independently verified the accuracy

and completeness of the said data and hence it should not be relied upon as such.

Author is not SEBI registered investment analyst. This document is prepared as part of Study project. Investment in

securities market are subject to market risks, read all the related documents carefully before investing. The securities

quoted are for illustration only and are not recommendatory. Registration granted by SEBI, and certification from

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