IIFL Securities's Stock Idea: Buy Dabur India with Target Rs 585

IIFL Securities issued a 'buy' recommendation for Dabur India on May 27, setting a target price of Rs 585, implying an upside potential of approximately 2.9%. The current market price of Dabur India is Rs 568.8, indicating a potential profit of Rs 16.2 if the target is achieved. This recommendation suggests that IIFL Securities is positive on the company's prospects and believes that the stock is undervalued compared to its intrinsic value.

About Dabur India:

Dabur India is an Indian multinational consumer goods company headquartered in Ghaziabad, Uttar Pradesh. It is one of the largest FMCG companies in India with a revenue of over ₹10,000 crores. Dabur produces a wide range of products including healthcare, personal care, food and beverages. The company was founded in 1884 by SK Burman and is now led by Mohit Burman. Dabur has a strong presence in both the domestic and international markets and exports its products to over 120 countries. The company's key brands include Dabur Chyawanprash, Dabur Red Paste, Hajmola, Vatika and Réal.

52 Week Price Trend:

Dabur India's current market price (CMP) of Rs 568.8 falls within its 52-week range of Rs 503.65 and Rs 597.1. While it is currently below its 52-week high, it remains significantly higher than its 52-week low. This indicates that Dabur's stock price has been relatively stable over the past year, despite experiencing some fluctuations. Investors may consider Dabur's financial performance, industry outlook, and overall market conditions before making any investment decisions.

Stratzy's MOST Analysis:

DABUR's BBB rating from Stratzy's MOST framework indicates that it has medium fundamental risks. The framework assesses four pillars: Management, Outlook, Safety, and Trend. DABUR's management and safety are likely considered strong, while its outlook and trend may be less favorable. This rating suggests that investors should be aware of potential risks associated with the company and consider other factors before making investment decisions.

Company's Fundamentals:

Dabur India (NSE:DABUR) is a leading Indian FMCG company with a strong presence in the healthcare, personal care, and food & beverages sectors. As of the latest available data, Dabur India has a stock PE (price-to-earnings) ratio of 53.2, a PB (price-to-book) ratio of 9.89, and a dividend yield of 0.98%. The PE ratio indicates that Dabur India's stock is trading at a premium of 53.2 times its earnings, which implies that investors are willing to pay a higher price for each rupee of earnings. The PB ratio suggests that Dabur India's stock is trading at a price that is 9.89 times its book value, indicating that investors are paying a premium for the company's assets. The dividend yield of 0.98% reflects the annual dividend paid out as a percentage of the current stock price, indicating a modest income stream for investors.

Fundamental and Technical information provided in this blog were last updated on 25 May, 2024

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