Buy Dabur Ltd. For Target Rs.675 - Motilal Oswal Financial Services Ltd
* We expect 3% revenue growth, impacted by weak performance of winter portfolio (30-35% revenue contribution in 3Q). Primary growth expected to normalize in 3Q as one-time GT inventory correction largely concluded in 2Q.
* Rural demand is gradually recovering, while urban demand remains subdued, affected by persistent food inflation.
* GP margin expected to expand 50bp YoY to 49.1% due to price hike by the company and EBITDA margin expected to contract by 30bp YoY to 20.2%.
* Badshah Masala continued to witness healthy momentum and saw double-digit growth. International business is expected to deliver double-digit growth in CC terms.
For More Research Reports : Click Here
For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412
