ICICI Direct Places Buy On FMCG Stock, Sees 34% Gains, Board Recommends 270% Final Dividend

ICICI Direct has placed a "Buy" on Dabur India Ltd. (DIL) with a target price of Rs. 675/share. If you buy the stock at the current market price, it can fetch up to 34% return, considering the given target price. DIL is a large-cap FMCH stock with a market capitalisation of Rs. 89,474.05 crores.

Recommended a Final Dividend of Rs. 2.70/share

"Pursuant to Regulations 30 and 43 of the Listing Regulations, the Board of Directors of the Company have recommended Final Dividend of Rs. 2.70 per equity share having face value of Re. I/- each (i.e., 270%) for the financial year 2022-23, for approval of members of the Company in the ensuing Annual General Meeting," the company said in an exchange filing.

Q4FY23 Results

According to ICICI Direct, Dabur reported 6.4% sales growth led entirely by pricing growth. Domestic sale was up 4.7% YoY, led by strong growth in food & beverages. EBITDA was at Rs. 409.8 crore, down 9.6% YoY, with margins at 15.3%. Consequent adjusted PAT was down 22.8% at Rs. 292.8 crore.

Buy Stock of Dabur India For a Target Price of Rs. 675/share

According to ICICI Direct, Dabur's share price has given 44% return in the last five years (from Rs. 366 in April 2018 to 529 in April 2023). Currency headwind in the international business & normalise sales of health supplement in post Covid period adversely impacting margins. "We continue to maintain our BUY rating on the stock. We value the stock at Rs. 675 on ascribing 52x FY25 earnings multiple," the brokerage has said.

Stock Overview

On Friday, the stock closed 4.79% down at Rs 505/share. The stock's 52 week high is Rs. 610.75/share and 52 week low is Rs. 482.25/share, respectively. The stock is trading 4.72% up is 52 week low.
The stock has fallen 5.24% in the past 1 week. It has fallen 7.86% in 1 month and 5.38% in 3 months, respectively. It has fallen 4.55% in the past 1 year. It gave 11.6% positive return in 3 years. It has given 36.36% positive return in 5 years,

About - Dabur India Ltd. (DIL)

Dabur India (DIL) is one of the biggest FMCG companies with a presence in Ayurveda-based products across categories. The company has substantial market share in health supplement, OTC & Ethical products, oral care, hair care, home care & juices. The company has a total distribution reach of 7.7 million retail outlets with direct reach of 1.4 million outlets. It plans to increase direct distribution to 1.5 million outlets. Dabur also derives ~50% of its sales through rural regions with a presence in 100,000 villages.

Disclaimer - The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.