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FMCG major Dabur India Limited has received a positive revision in brokerage sentiment, with brokerage firm Kotak Institutional Equities upgrading the stock to ‘ADD’ from ‘REDUCE’ and assigning a target price of Rs430 per share as it sees Valuation-Driven Recovery.  

“We upgrade Dabur to ADD from REDUCE following a 25% correction in the stock price over the past four months. We expect operating performance to improve to 9-10% revenue and EPS growth in FY2027E, aided by a soft base and better execution under the new India CEO, Herjit Bhalla” the brokerage stated in its note.

Brokerage Recommendation on Dabur in September 2026

*Potential Upside basis September 11, 2026 closing price of Rs 376

The brokerage believes the risk-reward has become more favourable, with reasonable valuations and expectations of improved operating performance supporting its revised view. However, it retains a cautious sector outlook and highlights portfolio challenges that could weigh on the company’s medium-term growth.

According to Kotak Institutional Equities, Dabur could deliver double-digit revenue growth and EBITDA margin expansion, although inflationary pressures remain a risk to margin improvement. Kotak estimates consolidated revenue, EBITDA and EPS to grow at CAGR of 8.6%, 9.6% and 8.2%, respectively, over FY2026-29E.

Kotak believes product innovation, format expansion and higher investments in advertising and promotion will be important to revive these categories. The brokerage also highlights Dabur’s net cash position of approximately Rs 85 billion as of FY2026, which could support organic and inorganic expansion into higher-growth categories.

As per Bloomberg, out of total 42 brokerage coverage Dabur has 25 buy, 13 hold and 4 sell recommendation with a consensus target price of Rs 500.38 representing ~30% upside from the last closing price.  

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