The Kotak Securities Report: Buy Dabur India - September 09

Kotak Securities has issued a buy recommendation for Dabur India with a target price of Rs 670. The current market price of the stock is Rs 651, suggesting an upside potential of 2.92%. The recommendation is based on the company's strong fundamentals, including its leading market position in consumer goods and its consistent financial performance. Dabur India is expected to benefit from the growing demand for Ayurvedic and natural products, as well as its focus on innovation and expansion.

About Dabur India:

Dabur India Limited is a multinational consumer goods company headquartered in Ghaziabad, India. Established in 1884, it is a leading manufacturer of Ayurvedic and natural health care products, personal care, food and beverages. Dabur's diverse portfolio includes iconic brands such as Dabur Chyawanprash, Dabur Honey, Real Fruit Juice, Hajmola, Lal Dant Manjan, and Vatika Hair Oil. With a global presence in over 120 countries, Dabur India is recognized for its commitment to natural healthcare and innovation.

52 Week Price Trend:

Dabur India's current market price (CMP) stands at Rs 651. The stock has been trading within a range of Rs 503.65 and Rs 597.1 over the past 52 weeks. Despite recent market volatility, Dabur has maintained relative stability, indicating investor confidence in the company's fundamentals. The company's strong brand portfolio, diverse product offerings, and wide distribution network continue to drive its growth. Analysts anticipate continued stability in Dabur's stock price, with potential for gradual appreciation as the company navigates the current economic landscape.

Stratzy's MOST Analysis:

Dabur has been assigned a BBB rating using Stratzy's MOST Framework, indicating medium fundamental risks. The framework evaluates companies based on management, outlook, safety, and trend. Dabur's management team is experienced and has a track record of success. The company has a positive outlook for growth, driven by its strong brands and expanding distribution network. Dabur's financial position is sound, with low debt levels and ample cash flow. The company's sales and earnings have grown steadily in recent years, indicating a positive trend. Overall, Dabur's BBB rating suggests that it has a solid foundation for long-term growth, with some areas for improvement.

Company's Fundamentals:

Dabur India (NSE: DABUR) has a stock PE ratio of 53.2, indicating that the current share price is 53.2 times the company's annual earnings per share. Its PB ratio of 9.89 suggests that the share price is 9.89 times the company's book value per share. Furthermore, Dabur India offers a dividend yield of 0.98%, implying that investors can expect to receive Rs. 0.98 per share annually for every Rs. 100 invested in the company's stock.

Fundamental and Technical information provided in this blog were last updated on 07 Sep, 2024

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