Kotak Securities Stock Idea: Buy Dabur India with Target Rs 530

On January 3rd, 2023, Kotak Securities has issued a "buy" recommendation for Dabur India, setting a target price of Rs 530. This indicates that the analysts at Kotak Securities believe the stock has the potential to appreciate from its current market price of Rs 518.25. While the specific reasons for the recommendation are not provided in the given context, it is generally recommended to consider a company's financial performance, industry outlook, and overall market conditions before making any investment decisions.

About Dabur India:

Dabur India is a multinational consumer goods company headquartered in Ghaziabad, India. Founded in 1884, it operates in the FMCG sector, offering a wide range of products including ayurvedic medicines, personal care products, food products, and home care products. Dabur enjoys a strong brand presence in India and has also expanded its operations to international markets. It is known for its flagship brands such as Dabur Chyawanprash, Vatika, Hajmola, and Real. Dabur India is listed on the National Stock Exchange of India (NSE) and is a constituent of the S&P BSE Sensex index.

52 Week Price Trend:

Dabur India, a leading FMCG company, has witnessed a significant fluctuation in its share price over the past year. As of today, its CMP stands at Rs 518.25, having rebounded from its 52-week low of Rs 489. However, the stock remains below its 52-week high of Rs 672. Despite facing headwinds such as inflation and supply chain disruptions, Dabur's strong brand portfolio and focus on innovation have helped it maintain its market position. Investors should monitor its performance closely as the company navigates the challenging economic environment.

Stratzy's MOST Analysis:

According to Stratzy's MOST framework, DABUR has received an AA- rating. This rating indicates a medium fundamental risk. The company performs well in terms of management (rated A), outlook (rated AA), and trend (rated AA). However, it receives a B rating for safety, indicating some concerns in this area. The overall AA- rating suggests that DABUR has strong management, a positive outlook, and a favorable trend, but needs to address safety issues to improve its fundamental risk profile.

Company's Fundamentals:

Dabur India, a leading FMCG company, has a stock PE ratio of 51.07, indicating that its market value is 51.07 times its earnings per share. Its PB ratio of 8.67 shows that its market value is 8.67 times its book value, revealing a premium valuation compared to the industry average. However, the dividend yield of 1.08% implies that investors receive a modest return on their investment, suggesting that Dabur India may prioritize growth over dividends for the time being.

Fundamental and Technical information provided in this blog were last updated on 03 Jan, 2025

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