2 November 2023 India | Consumer | Company Update

Dabur | HOLD
Greenshoots seen but not being felt often enough
Dabur’s 2QFY24 was overall inline. Domestic growth was soft especially in Foods, which had Richard Liu
richard.liu@jmfl.com | Tel: (91 22) 66303064
to deal with adverse seasonality and delay in festive-offtakes. HPC and Healthcare growth
Mehul Desai
were soft too – around mid-single-digit. Management continues to point to greenshoots mehul.desai@jmfl.com | Tel: (91 22) 66303065
being seen in rural recovery but fact is that growth rates are lower vs 1Q’s. Foods demand
Sumanyu Saraf
has seemingly picked up in Oct as festive season gets closer, and a lot of the hopes for sumanyu.saraf@jmfl.com | Tel: (91 22) 66303077
Healthcare and HPC are also pinned on the upcoming festive season and winters thereafter.
Gross margin expansion was a key earnings driver – expansion was strong and more than
half of it was used to build back ad spends that were run down significantly over the recent
years. Dabur would benefit from a very favourable base in 2H and comp vs peers would work
in its favour as a result. Overall, though, we continue to find Dabur’s earnings construct
Recommendation and Price Target
unexciting still, given the volatility in core categories, which should ideally cap its trading-
Current Reco. HOLD
multiple to lower-than-historical level. Maintaining HOLD. Previous Reco. HOLD
 Inline quarter overall; stronger GPM benefit was partially offset by the need to up ad- Current Price Target (12M) 595
Upside/(Downside) 12.3%
spends and Namaste-related costs: Dabur’s 2QFY24 consolidated sales, EBITDA and net
Previous Price Target 595
profit grew 7.3% (5.1% ex-M&A), 10% and 5.1% to INR 32bn, INR6.6bn and INR5.2bn. Change 0.0%
These were broadly on expected lines. Underlying domestic consumer sales growth was
just 3.2% vs 7.5% in 1Q, entirely volume-driven - 5-6% growth in HPC and Healthcare Key Data – DABUR IN
was partially offset by 7.4% decline in Foods due to the impact of adverse seasonality and Current Market Price INR530
delayed festive season on the Juices business (down c.10%). On the operating Market cap (bn) INR939.9/US$11.3
environment, management highlighted that urban continues to do relatively well; rural Free Float 35%
Shares in issue (mn) 1,767.4
trajectory is improving, albeit at a more gradual pace - a lot of the hopes are pinned on
Diluted share (mn) 1,771.8
festive and winters thereafter. International did well with CC growth of 23.6% but 3-mon avg daily val (mn) INR1,027.3/US$12.3
reported growth was lower at 10.4% due to adverse currency translation impact. 52-week range 611/504
Sensex/Nifty 64,081/19,133
 Consolidated GPM surprised positively and expanded 299bps yoy: GPM was helped by
INR/US$ 83.3
input-costs moderation and better sales-mix given lower Foods revenue during 2Q.
Employee expenses grew 9.7% while Other Expenses were up 12.8% due in large part to Price Performance
the impact of legal expenses (INR360mn) to defend Namaste against cases filed in US % 1M 6M 12M
court alleging that some products manufactured by the hair-relaxer industry has caused Absolute -3.8 -1.1 -5.7
cancer; management believes there is no merit in the case. A&P rose 42.6% yoy - more a Relative* -1.7 -5.6 -10.4
function of the same having been run-down in recent years to manage margin; spends * To the BSE Sensex

were just about 7% higher vs FY21 level. Net-net, EBITDA margin expanded 50bps to
20.7%. Input-costs scenario is stable to benign, and the business plans to continue
upping ad spends with increased spends behind HPC, Health Supplements. Management
is confident about achieving c.19.5% or slightly better EBITDA margin for FY24E.
 Muted performance across core categories barring Home-care: Both HPC and Healthcare
growth decelerated vs 1Q while Foods revenue fell 7.4% yoy due to the issues detailed
earlier. Within HPC, Oral-care sales grew just 4.1% (lower vs Colgate’s 6-7%) though
Dabur Red grew better in high single-digit. Hair-oils growth moderated as well to 4%.
Home-care was again a clear outperformer within HPC with sales growth of 15%. Within
Healthcare, Digestives (+18%), Consumer Health (+c.8%) did well but Chyawanprash
was muted as season was delayed.

Financial Summary (INR mn)

Y/E March FY22A FY23A FY24E FY25E FY26E
Net Sales 108,556 114,916 128,720 142,343 157,394
Sales Growth (%) 13.8% 5.9% 12.0% 10.6% 10.6% JM Financial Research is also available on:
EBITDA 22,538 21,641 26,205 29,195 32,471 Bloomberg - JMFR <GO>,
EBITDA Margin (%) 20.7% 18.8% 20.3% 20.4% 20.6%
Adjusted Net Profit 18,242 17,072 19,915 22,309 24,774
Thomson Publisher & Reuters,
Diluted EPS (INR) 10.3 9.6 11.2 12.6 14.0 S&P Capital IQ, FactSet and Visible Alpha
Diluted EPS Growth (%) 8.1% -6.6% 16.7% 12.0% 11.0%
ROIC (%) 63.8% 48.7% 49.1% 53.6% 58.8% Please see Appendix I at the end of this
ROE (%) 22.7% 19.7% 21.1% 21.5% 22.0%
51.4 55.0 47.2 42.1 37.9
report for Important Disclosures and
P/E (x)
P/B (x) 11.2 10.5 9.5 8.7 8.0 Disclaimers and Research Analyst
EV/EBITDA (x) 38.9 40.8 33.4 29.7 26.4 Certification.
Dividend Yield (%) 1.0% 1.0% 1.3% 1.5% 1.8%
Source: Company data, JM Financial. Note: Valuations as of 02/Nov/2023

JM Financial Institutional Securities Limited

Dabur 2 November 2023

Exhibit 1. 2QFY24 result snapshot: Overall performance on expected lines – very strong GPM expansion offset to a large extent by higher ad
spends and other overheads (INR mn)
CONSOLIDATED FINANCIALS PARENT COMPANY
2QFY24 2QFY23 YoY % 2QFY24E % Var 2QFY24 2QFY23 YoY %
Sales 31,957 29,770 7.3% 32,184 -0.7% 23,284 22,605 3.0%
Other Operating Income 82 95 -13.6% 104 -21.5% 60 64 -5.3%
Total Revenue 32,038 29,865 7.3% 32,288 -0.8% 23,344 22,669 3.0%
Gross Profit 15,400 13,457 14.4% 15,030 2.5% 10,871 9,828 10.6%
Gross Profit Margin % 48.2% 45.2% 299 bps 46.7% 149 bps 46.7% 43.5% 321 bps
Staff Cost 3,155 2,876 9.7% 3,041 3.7% 2,016 1,847 9.1%
Advertisement Spends 2,165 1,518 42.6% 2,044 6.0% 1,730 1,233 40.3%
Other Expenses 3,553 3,150 12.8% 3,478 2.1% 2,100 2,087 0.6%
EBITDA 6,609 6,007 10.0% 6,570 0.6% 5,086 4,725 7.6%
EBITDA margin % 20.7% 20.2% 50 bps 20.4% 26 bps 21.8% 20.9% 94 bps
Depreciation 983 705 39.5% 1,020 -3.6% 512 465 10.0%
EBIT 5,626 5,303 6.1% 5,550 1.4% 4,575 4,260 7.4%
Interest Expense 281 151 86.9% 150 87.6% 184 79 132.6%
Financial Other Income 1,164 1,233 -5.6% 1,207 -3.5% 1,025 1,076 -4.7%
PBT 6,508 6,385 1.9% 6,607 -1.5% 5,415 5,256 3.0%
Taxes 1,443 1,473 -2.1% 1,553 -7.1% 1,213 1,298 -6.6%
Minority Interest -85 11 -12 0 0
Net Profit 5,151 4,901 5.1% 5,067 1.6% 4,203 3,958 6.2%
Source: Company, JM Financial

Exhibit 2. 2QFY24 costs breakdown

CONSOLIDATED FINANCIALS PARENT COMPANY
% of sales 2QFY24 2QFY23 2QFY24E 2QFY24 2QFY23
Cost of Goods Sold 51.8% 54.8% 53.3% 53.3% 56.5%
Staff Cost 9.9% 9.7% 9.5% 8.7% 8.2%
Advertisement & Sales Promotion 6.8% 5.1% 6.4% 7.4% 5.5%
Other Expenses 11.1% 10.6% 10.8% 9.0% 9.2%
Source: Company, JM Financial

Exhibit 3. Category-wise snapshot – Growth led by Digestives, Home Care & International; Foods declined due to Juices (INR mn)
2QFY24 2QFY23 YoY Growth 2QFY24E % Var 1HFY24 1HFY23 YoY Growth
Hair Care 4,260 4,095 4.0% 4,464 -4.6% 8,807 8,237 6.9%
Oral Care 4,250 4,083 4.1% 4,328 -1.8% 8,306 7,672 8.3%
Health Supplements 3,277 3,277 0.0% 3,507 -6.5% 5,890 5,754 2.4%
Digestives 1,320 1,118 18.1% 1,285 2.7% 2,782 2,397 16.1%
Skin Care 794 756 5.0% 832 -4.5% 1,647 1,581 4.2%
Home Care 1,970 1,712 15.1% 1,866 5.6% 3,588 3,124 14.8%
Foods (Juices & Culinary) 3,959 4,274 -7.4% 4,103 -3.5% 9,421 9,765 -3.5%
Badshah Masala 665 0 700 -5.0% 1,238 0
OTC & Ethicals 2,065 1,912 8.0% 2,065 0.0% 3,940 3,612 9.1%
International 8,204 7,431 10.4% 7,952 3.2% 15,511 14,061 10.3%
Retail 299 262 14.1% 301 -0.8% 596 519 14.9%
Others 893 850 5.0% 782 14.2% 1,437 1,170 22.9%
Total Net Sales 31,956 29,770 7.3% 32,184 -0.7% 63,162 57,891 9.1%
Source: Company, JM Financial

JM Financial Institutional Securities Limited Page 2

Dabur 2 November 2023

Exhibit 4. 2Q & 1HFY24 Segment Financials (INR mn)

2QFY24 2QFY23 YoY % 1HFY24 1HFY23 YoY %
Segment Revenue
CCD+CHD 25,950 24,109 7.6% 49,865 45,468 9.7%
Foods including Badshah 5,400 4,991 8.2% 12,088 11,079 9.1%
Retail 299 262 14.1% 596 519 14.9%
Others 308 408 -24.6% 619 828 -25.2%
Total Seg Revenue 31,957 29,770 7.3% 63,167 57,894 9.1%
Segment Result
CCD+CHD 6,300 5,643 11.6% 11,881 10,435 13.9%
Foods including Badshah 806 933 -13.6% 1,733 1,930 -10.2%
Retail 1 -5 -122.2% -2 -6 -65.5%
Others 35 43 -19.0% 71 89 -19.8%
Total Seg Result 7,141 6,614 8.0% 13,683 12,449 9.9%
Unallocable Exp 1,516 1,312 15.6% 2,976 2,386 24.8%
Net Financial Inc. 883 1,082 -18.4% 1,737 1,966 -11.6%
Taxes 1,443 1,473 -2.1% 2,810 2,704 3.9%
Minority Interest -85 11 -156 22
Net Profit 5,151 4,901 5.1% 9,789 9,304 5.2%
Segment Margin %
CCD+CHD 24.3% 23.4% 87 bps 23.8% 23.0% 88 bps
Foods including Badshah 14.9% 18.7% -377 bps 14.3% 17.4% -309 bps
Retail 0.3% -1.7% 205 bps -0.3% -1.1% 74 bps
Others 11.3% 10.6% 78 bps 11.5% 10.7% 77 bps
Total Segment Margin % 22.3% 22.2% 13 bps 21.7% 21.5% 16 bps
Source: Company, JM Financial

Exhibit 5. Constituents of 2Q Domestic Growth

7%
3.1% 6.3%

6%

5% 1.7% -1.5%

4%
3.2%
3.0%
3%

2%

1%

0%
HPC Healthcare Foods Domestic Consumer M&A - Badshah Total Domestic incl
- Organic M&A

Source: Company, JM Financial

JM Financial Institutional Securities Limited Page 3

Dabur 2 November 2023

Exhibit 6. Dabur’s Oral-care growth under-performed Colgate again during Sep-Q

Dabur India - Oral Care Revenue Growth Colgate India - Total Sales Growth
25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

-5.0%
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23

Source: Company, JM Financial

Exhibit 7. Foods decline of 7.4% yoy was seasonality-related, though still the strongest on 4-
Yr CAGR basis
Foods* HPC Healthcare
15.0% 13.6%

9.4% 8.7%
10.0%

5.9% 5.6%
5.0%

0.0%

-5.0%

-7.4%
-10.0%
2QFY24 yoy growth 4-Yr CAGR
Source: Company, JM Financial. Note: Above charts are based on growth figures for various sub-categories provided by the company and
are subject to small rounding-off errors
*Foods refer to organic growth and excludes Badshah Masala

Exhibit 8. Revenue including M&A grew by 7% yoy Exhibit 9. Domestic volume growth remained at 3% (organic)
Domestic FMCG: +3.2%
YoY net sales growth %
International: +10.4% (+23.6% cc) Domestic volume growth
32%
32% c.2ppt contri from M&A 40%
34.4%
25%
24% 25.4%
16% 18.1%
16% 14% 20% 16.8%
12% 11%
8% 8% 8% 10.0%
6% 6% 7%
8%
3% 5.0%
2.0% 2.0% 3.0% 3.0%
1.0% 1.0%
0% 0%

-3.0%
-8%

-9.7%
-12% -13%
-16% -14.6%
4QFY20 2QFY21 4QFY21 2QFY22 4QFY22 2QFY23 4QFY23 2QFY24 -20%
4QFY20 2QFY21 4QFY21 2QFY22 4QFY22 2QFY23 4QFY23 2QFY24
Source: Company, JM Financial Source: Company, JM Financial

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Dabur 2 November 2023

Exhibit 10. Digestives, Home Care, OTC & Ethicals performed well; Foods disappointed again
3QFY23 4QFY23 1QFY24 2QFY24

29%
30%

18%
18%
20%

15%
14%

15%
13%

11%

10%
10%
10%

8%
10%

6%

6%
5%

5%
4%
4%

4%
3%

3%
0%
0%

0%
0%

0%
-1%
-1%

-2%
-3%

-3%

-10%

-7%
-20% -15%
Hair Care Oral Care Health Suppl. Digestives Skin Care Home Care Foods* OTC & Eth
Source: Company, JM Financial
*Excludes Badshah Masala

Exhibit 11. International revenue growth remained strong in early-double-digit; CC growth

was even better during Sep-Q

35%
International growth (Reported)-%
28.2%

19.5%

15% 13.0%
11.2% 10.2% 10.4%
6.7% 5.5%
5.5% 5.1%
2.5% 1.4%
0.0%

-5% -0.6%

-25% -21.8%
4QFY20 2QFY21 4QFY21 2QFY22 4QFY22 2QFY23 4QFY23 2QFY24

Source: Company, JM Financial

Exhibit 12. International growth led by Turkey, Egypt; SSA Consol, Namaste were fairly
muted
2QFY24 International Geographies growth trend (cc) - %
78%
50%

40%
35%

30%

20% 18%

9%
10%

2%
1%
0%
Turkey Egypt MENA SAARC SSA Consol Namaste
Source: Company, JM Financial

JM Financial Institutional Securities Limited Page 5

Dabur 2 November 2023

Exhibit 13. Margin-bridge –Strong GPM expansion offset to a large extent by A&P build-back
and higher other overheads
+299bps -81bps
23% -168ps

20.7%
20.2%

19%

15%

11%
OPM - 2QFY23 Gross Margin Other Overheads A&P Spends OPM - 2QFY24
Source: Company, JM Financial

Exhibit 14. Consolidated A&P spends grew 42.6% yoy and 6% qoq but still below historical
trend as a % of sales
Ad spends - % of sales

12% Domestic : + 40.3%

International : + 52.6%
10.3%
10%
8.9% 8.6%
8.1% 8.0% 8.1%
8% 7.4% 7.2% 7.2%
6.5% 6.6% 6.8%
6.3% 6.5%
6.0% 5.9%
6% 5.4% 5.6% 5.7%
4.6% 5.1%

4%

2%

0%
2QFY19 4QFY19 2QFY20 4QFY20 2QFY21 4QFY21 2QFY22 4QFY22 2QFY23 4QFY23 2QFY24

Source: Company, JM Financial

Exhibit 15. EBITDA margin expanded 51bps yoy and 131bps qoq
Consolidated EBITDA margin %

23% 22.6%
22.0%
21.1% 21.3%
21.0% 21.0%
20.6%
20.1% 20.0%
19.3% 19.3%
19.0% 18.9%
19%
18.0%

15.3%
15%

11%
4QFY20 2QFY21 4QFY21 2QFY22 4QFY22 2QFY23 4QFY23 2QFY24

Source: Company, JM Financial

JM Financial Institutional Securities Limited Page 6

Dabur 2 November 2023

Exhibit 16. Dabur one-year forward PE band

Dabur - PE Moving Avg PE Avg+1SD Avg-1SD
70

60

50

40

30

20
Nov-18 Nov-19 Nov-20 Nov-21 Nov-22 Nov-23

Source: Company, Bloomberg, JM Financial

JM Financial Institutional Securities Limited Page 7

Dabur 2 November 2023

Financial Tables (Consolidated)

Pro fi t & Lo s s s ta te me n t (I NR mn ) B a l a n c e Sh e e t (I NR mn )
Y/E M a rc h FY2 2 A FY2 3 A FY2 4 E FY2 5 E FY2 6 E Y/E M a rc h FY2 2 A FY2 3 A FY2 4 E FY2 5 E FY2 6 E
Sa l e s (Gro s s ) 1 0 8 ,5 5 6 1 1 4 ,9 1 6 1 2 8 ,7 2 0 1 4 2 ,3 4 3 1 5 7 ,3 9 4 Shareholders' Fund 83,813 89,733 98,992 108,294 117,390
Sales Growth 13.8% 5.9% 12.0% 10.6% 10.6% Share capital 1,768 1,772 1,772 1,772 1,772
Other Operating Income 331 383 429 475 525 Reserves & Surplus 82,045 87,961 97,220 106,522 115,618
To ta l R e ve n u e 1 0 8 ,8 8 7 1 1 5 ,2 9 9 1 2 9 ,1 5 0 1 4 2 ,8 1 7 1 5 7 ,9 1 9 Preference Share Capital 0 0 0 0 0
Cost of Goods Sold/Op. Exp. 56,397 62,687 67,670 74,126 81,885 Minority Interest 406 4,682 4,585 4,534 4,531
Personnel cost 10,800 11,370 12,478 13,771 15,179 Total Loans 8,677 9,990 4,995 3,497 2,972
Other expenses 19,152 19,601 22,796 25,726 28,383 Def. Tax Liab / Assets (-) 816 889 1,447 2,094 2,845
EB I TDA 2 2 ,5 3 8 2 1 ,6 4 1 2 6 ,2 0 5 2 9 ,1 9 5 3 2 ,4 7 1 To ta l - Eq u i ty & Li a b 9 3 ,7 1 1 1 0 5 ,2 9 4 1 1 0 ,0 2 0 1 1 8 ,4 1 8 1 2 7 ,7 3 8
EBITDA Margin 20.7% 18.8% 20.3% 20.4% 20.6% Net Fixed Assets 23,130 35,790 36,570 37,250 37,780
EBITDA Growth 12.5% -4.0% 21.1% 11.4% 11.2% Gross Fixed Assets 35,666 49,195 53,057 56,971 60,906
Depn & Amort 2,529 3,110 4,048 4,208 4,389 Intangible Assets 2,512 4,053 4,053 4,053 4,053
EBIT 20,009 18,532 22,158 24,987 28,082 Less: Depn. & Amort. 16,523 18,916 21,984 25,202 28,591
Other Income 3,932 4,454 4,382 4,714 5,216 Capital WIP & Net Lease Assets 1,475 1,459 1,444 1,429 1,413
Finance Cost 386 782 562 318 243 Investments 62,199 62,653 63,757 65,028 66,489
PBT before Excep & Forex 23,555 22,203 25,978 29,382 33,056 Current Assets 35,885 36,332 42,114 51,935 63,017
Excep & forex Inc/Loss(-) 0 0 0 0 0 Inventories 19,114 20,242 22,674 25,073 27,724
PBT 23,555 22,203 25,978 29,382 33,056 Sundry Debtors 6,462 8,488 9,507 10,513 11,625
Taxes 5,264 5,174 6,143 7,108 8,268 Cash & Bank Balances 5,701 3,259 5,155 11,093 17,887
Extraordinary Inc/Loss(-) -850 0 0 0 0 Loans & Advances 647 703 773 850 935
Assoc. Profit/Min. Int.(-) 49 -42 -80 -35 13 Other Current Assets 3,962 3,641 4,005 4,405 4,846
Reported Net profit 17,392 17,072 19,915 22,309 24,774 Current Liab. & Prov. 27,503 29,482 32,421 35,795 39,548
Ad j u s te d Ne t Pro fi t 1 8 ,2 4 2 1 7 ,0 7 2 1 9 ,9 1 5 2 2 ,3 0 9 2 4 ,7 7 4 Current Liabilities 23,656 25,381 27,898 30,791 33,996
Net Margin 16.8% 14.9% 15.5% 15.7% 15.7% Provisions & Others 3,847 4,101 4,523 5,004 5,552
Diluted share capital (mn) 1,768 1,772 1,772 1,772 1,772 Net Current Assets 8,382 6,851 9,693 16,140 23,469
Di l u te d EPS (I NR ) 1 0 .3 9 .6 1 1 .2 1 2 .6 1 4 .0 Ap p l i c a ti o n o f Fu n d s 9 3 ,7 1 1 1 0 5 ,2 9 4 1 1 0 ,0 2 0 1 1 8 ,4 1 8 1 2 7 ,7 3 8
Diluted EPS Growth 8.1% -6.6% 16.7% 12.0% 11.0% Source: Company, JM Financial
Total Dividend + Tax 9,193 9,213 11,744 14,271 17,086
Dividend Per Share (Rs) 5.2 5.2 6.6 8.1 9.6
Source: Company, JM Financial

Ca s h Fl o w s ta te me n t (I NR mn ) Du p o n t An a l ys i s
Y/E M a rc h FY2 2 A FY2 3 A FY2 4 E FY2 5 E FY2 6 E Y/E M a rc h FY2 2 A FY2 3 A FY2 4 E FY2 5 E FY2 6 E
Profit before Tax 23,555 22,203 25,978 29,382 33,056 Net Margin 16.8% 14.9% 15.5% 15.7% 15.7%
Depn. & Amort. 2,529 3,110 4,048 4,208 4,389 Asset Turnover (x) 1.2 1.2 1.2 1.2 1.3
Net Interest Exp. / Inc. (-) -3,546 -3,672 -3,820 -4,395 -4,974 Leverage Factor (x) 1.1 1.1 1.1 1.1 1.1
Inc (-) / Dec in WCap. -968 -1,601 -1,156 -749 -824 RoE 22.7% 19.7% 21.1% 21.5% 22.0%
Others 329 -212 -341 -309 -262 Ke y R a ti o s
Taxes Paid -3,876 -4,945 -5,933 -6,868 -7,980 Y/E M a rc h FY2 2 A FY2 3 A FY2 4 E FY2 5 E FY2 6 E
O p e ra ti n g Ca s h Fl o w 1 8 ,0 2 3 1 4 ,8 8 4 1 8 ,7 7 5 2 1 ,2 7 0 2 3 ,4 0 6 BV/Share (Rs.) 47.4 50.6 55.9 61.1 66.3
Capex -3,692 -4,857 -3,934 -3,991 -4,015 ROIC 63.8% 48.7% 49.1% 53.6% 58.8%
Free Cash Flow 14,331 10,027 14,840 17,279 19,391 ROE 22.7% 19.7% 21.1% 21.5% 22.0%
-Inc/dec in investments -12,731 -4,950 -1,105 -1,270 -1,461 Net Debt/Equity (x) -0.7 -0.6 -0.6 -0.7 -0.7
Other current assets 3,668 3,942 3,820 4,395 4,974 P/E (x) 51.4 55.0 47.2 42.1 37.9
I n ve s ti n g Ca s h Fl o w -1 2 ,7 5 5 -5 ,8 6 5 -1 ,2 1 9 -8 6 6 -5 0 2 P/B (x) 11.2 10.5 9.5 8.7 8.0
Inc/(dec) in capital 1 4 0 0 0 EV/EBITDA (x) 38.9 40.8 33.4 29.7 26.4
Dividend+Tax Thereon -9,723 -9,213 -10,656 -13,007 -15,679 EV/Sales (x) 8.1 7.7 6.8 6.1 5.4
Inc/dec in loans 5,408 488 -4,995 -1,499 -524 Debtor days 22 27 27 27 27
Other assets -590 -1,631 -9 40 94 Inventory days 64 64 64 64 64
Fi n a n c i n g Ca s h Fl o w -4 ,9 0 5 -1 0 ,3 5 2 -1 5 ,6 6 0 -1 4 ,4 6 5 -1 6 ,1 1 0 Creditor days 100 99 99 99 99
I n c / De c (-) i n Ca s h 364 -1 ,3 3 4 1 ,8 9 6 5 ,9 3 8 6 ,7 9 4 Source: Company, JM Financial
Opening cash balance 5,338 4,593 3,259 5,155 11,093
Closing cash balance 5,701 3,259 5,155 11,093 17,887
Source: Company, JM Financial

JM Financial Institutional Securities Limited Page 8

Dabur 2 November 2023

History of Recommendation and Target Price Recommendation History

Date Recommendation Target Price % Chg.

14-Apr-20 Hold 465

28-May-20 Hold 445 -4.3

8-Jul-20 Hold 445 0.0

31-Jul-20 Hold 450 1.1

8-Oct-20 Hold 450 0.0

3-Nov-20 Hold 490 8.9

29-Jan-21 Hold 520 6.1

7-May-21 Hold 520 0.0

4-Aug-21 Hold 625 20.2

2-Nov-21 Hold 665 6.4

3-Feb-22 Hold 665 0.0

6-May-22 Hold 590 -11.3

5-Aug-22 Hold 605 2.5

7-Oct-22 Hold 600 -0.8

26-Oct-22 Hold 610 1.7

3-Feb-23 Hold 600 -1.6

8-Apr-23 Hold 590 -1.7

5-May-23 Hold 580 -1.7

3-Aug-23 Hold 580 0.0

16-Sep-23 Hold 595 2.6

JM Financial Institutional Securities Limited Page 9

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APPENDIX I

JM Financial Inst itut ional Secur ities Lim ited

Corporate Identity Number: U67100MH2017PLC296081
Member of BSE Ltd. and National Stock Exchange of India Ltd.
SEBI Registration Nos.: Stock Broker - INZ000163434, Research Analyst - INH000000610
Registered Office: 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025, India.
Board: +91 22 6630 3030 | Fax: +91 22 6630 3488 | Email: jmfinancial.research@jmfl.com | www.jmfl.com
Compliance Officer: Mr. Sahil Salastekar | Tel: +91 22 6224 1073 | Email: sahil.salastekar@jmfl.com
Grievance officer: Mr. Sahil Salastekar | Tel: +91 22 6224 1073 | Email: instcompliance@jmfl.com

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Definition of ratings
Rating Meaning
Buy Total expected returns of more than 10% for stocks with market capitalisation in excess of INR 200 billion and REITs* and more than
15% for all other stocks, over the next twelve months. Total expected return includes dividend yields.
Hold Price expected to move in the range of 10% downside to 10% upside from the current market price for stocks with market
capitalisation in excess of INR 200 billion and REITs* and in the range of 10% downside to 15% upside from the current market price
for all other stocks, over the next twelve months.
Sell Price expected to move downwards by more than 10% from the current market price over the next twelve months.
* REITs refers to Real Estate Investment Trusts.
Research Analyst(s) Certification
The Research Analyst(s), with respect to each issuer and its securities covered by them in this research report, certify that:
All of the views expressed in this research report accurately reflect his or her or their personal views about all of the issuers and their securities; and
No part of his or her or their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this research
report.
Important Disclosures
This research report has been prepared by JM Financial Institutional Securities Limited (JM Financial Institutional Securities) to provide information about the
company(ies) and sector(s), if any, covered in the report and may be distributed by it and/or its associates solely for the purpose of information of the select
recipient of this report. This report and/or any part thereof, may not be duplicated in any form and/or reproduced or redistributed without the prior written
consent of JM Financial Institutional Securities. This report has been prepared independent of the companies covered herein.
JM Financial Institutional Securities is registered with the Securities and Exchange Board of India (SEBI) as a Research Analyst and a Stock Broker having trading
memberships of the BSE Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE). No material disciplinary action has been taken by SEBI against JM Financial
Institutional Securities in the past two financial years which may impact the investment decision making of the investor. Registration granted by SEBI and
certification from the National Institute of Securities Market (NISM) in no way guarantee performance of JM Financial Institutional Securities or provide any
assurance of returns to investors.
JM Financial Institutional Securities renders stock broking services primarily to institutional investors and provides the research services to its institutional
clients/investors. JM Financial Institutional Securities and its associates are part of a multi-service, integrated investment banking, investment management,
brokerage and financing group. JM Financial Institutional Securities and/or its associates might have provided or may provide services in respect of managing
offerings of securities, corporate finance, investment banking, mergers & acquisitions, broking, financing or any other advisory services to the company(ies)
covered herein. JM Financial Institutional Securities and/or its associates might have received during the past twelve months or may receive compensation from
the company(ies) mentioned in this report for rendering any of the above services.
JM Financial Institutional Securities and/or its associates, their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell
the securities of the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) covered under this report or (c) act as an advisor or lender/borrower to,
or may have any financial interest in, such company(ies) or (d) considering the nature of business/activities that JM Financial Institutional Securities is engaged in,
it may have potential conflict of interest at the time of publication of this report on the subject company(ies).
Neither JM Financial Institutional Securities nor its associates or the Research Analyst(s) named in this report or his/her relatives individually own one per cent or
more securities of the company(ies) covered under this report, at the relevant date as specified in the SEBI (Research Analysts) Regulations, 2014.
The Research Analyst(s) principally responsible for the preparation of this research report and their immediate relatives are prohibited from buying or selling debt
or equity securities, including but not limited to any option, right, warrant, future, long or short position issued by company(ies) covered under this report. The
Research Analyst(s) principally responsible for the preparation of this research report or their immediate relatives (as defined under SEBI (Research Analysts)
Regulations, 2014); (a) do not have any financial interest in the company(ies) covered under this report or (b) did not receive any compensation from the
company(ies) covered under this report, or from any third party, in connection with this report or (c) do not have any other material conflict of interest at the time
of publication of this report. Research Analyst(s) are not serving as an officer, director or employee of the company(ies) covered under this report.

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While reasonable care has been taken in the preparation of this report, it does not purport to be a complete description of the securities, markets or
developments referred to herein, and JM Financial Institutional Securities does not warrant its accuracy or completeness. JM Financial Institutional Securities may
not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. This
report is provided for information only and is not an investment advice and must not alone be taken as the basis for an investment decision.
This research report is based on the fundamental research/analysis conducted by the Research Analyst(s) named herein. Accordingly, this report has been
prepared by studying/focusing on the fundamentals of the company(ies) covered in this report and other macro‐economic factors. JM Financial Institutional
Securities may have also issued or may issue, research reports and/or recommendations based on the technical/quantitative analysis of the company(ies) covered
in this report by studying and using charts of the stock's price movement, trading volume and/or other volatility parameters. As a result, the
views/recommendations expressed in such technical research reports could be inconsistent or even contrary to the views contained in this report.
The investment discussed or views expressed or recommendations/opinions given herein may not be suitable for all investors. The user assumes the entire risk of
any use made of this information. The information contained herein may be changed without notice and JM Financial Institutional Securities reserves the right to
make modifications and alterations to this statement as they may deem fit from time to time.
This report is neither an offer nor solicitation of an offer to buy and/or sell any securities mentioned herein and/or not an official confirmation of any transaction.
This report is not directed or intended for distribution to, or use by any person or entity who is a citizen or resident of or located in any locality, state, country or
other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject JM Financial Institutional
Securities and/or its affiliated company(ies) to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be
eligible for sale in all jurisdictions or to a certain category of investors. Persons in whose possession this report may come, are required to inform themselves of
and to observe such restrictions.
Additional disclosure only for U.S. persons: JM Financial Institutional Securities has entered into an agreement with JM Financial Securities, Inc. ("JM Financial
Securities"), a U.S. registered broker-dealer and member of the Financial Industry Regulatory Authority ("FINRA") in order to conduct certain business in the
United States in reliance on the exemption from U.S. broker-dealer registration provided by Rule 15a-6, promulgated under the U.S. Securities Exchange Act of
1934 (the "Exchange Act"), as amended, and as interpreted by the staff of the U.S. Securities and Exchange Commission ("SEC") (together "Rule 15a-6").
This research report is distributed in the United States by JM Financial Securities in compliance with Rule 15a-6, and as a "third party research report" for
purposes of FINRA Rule 2241. In compliance with Rule 15a-6(a)(3) this research report is distributed only to "major U.S. institutional investors" as defined in Rule
15a-6 and is not intended for use by any person or entity that is not a major U.S. institutional investor. If you have received a copy of this research report and are
not a major U.S. institutional investor, you are instructed not to read, rely on, or reproduce the contents hereof, and to destroy this research or return it to JM
Financial Institutional Securities or to JM Financial Securities.
This research report is a product of JM Financial Institutional Securities, which is the employer of the research analyst(s) solely responsible for its content. The
research analyst(s) preparing this research report is/are resident outside the United States and are not associated persons or employees of any U.S. registered
broker-dealer. Therefore, the analyst(s) are not subject to supervision by a U.S. broker-dealer, or otherwise required to satisfy the regulatory licensing
requirements of FINRA and may not be subject to the Rule 2241 restrictions on communications with a subject company, public appearances and trading
securities held by a research analyst account.
Any U.S. person who is recipient of this report that wishes further information regarding, or to effect any transaction in, any of the securities discussed in this
report, must contact, and deal directly through a U.S. registered representative affiliated with a broker-dealer registered with the SEC and a member of FINRA. In
the U.S., JM Financial Institutional Securities has an affiliate, JM Financial Securities, Inc. located at 1325 Avenue of the Americas, 28th Floor, Office No. 2821,
New York, New York 10019. Telephone +1 (332) 900 4958 which is registered with the SEC and is a member of FINRA and SIPC.
Additional disclosure only for U.K. persons: Neither JM Financial Institutional Securities nor any of its affiliates is authorised in the United Kingdom (U.K.) by the
Financial Conduct Authority. As a result, this report is for distribution only to persons who (i) have professional experience in matters relating to investments
falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Financial Promotion Order"), (ii)
are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Financial Promotion Order, (iii) are outside
the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial
Services and Markets Act 2000) in connection with the matters to which this report relates may otherwise lawfully be communicated or caused to be
communicated (all such persons together being referred to as "relevant persons"). This report is directed only at relevant persons and must not be acted on or
relied on by persons who are not relevant persons. Any investment or investment activity to which this report relates is available only to relevant persons and will
be engaged in only with relevant persons.
Additional disclosure only for Canadian persons: This report is not, and under no circumstances is to be construed as, an advertisement or a public offering of the
securities described herein in Canada or any province or territory thereof. Under no circumstances is this report to be construed as an offer to sell securities or as
a solicitation of an offer to buy securities in any jurisdiction of Canada. Any offer or sale of the securities described herein in Canada will be made only under an
exemption from the requirements to file a prospectus with the relevant Canadian securities regulators and only by a dealer properly registered under applicable
securities laws or, alternatively, pursuant to an exemption from the registration requirement in the relevant province or territory of Canada in which such offer or
sale is made. This report is not, and under no circumstances is it to be construed as, a prospectus or an offering memorandum. No securities commission or
similar regulatory authority in Canada has reviewed or in any way passed upon these materials, the information contained herein or the merits of the securities
described herein and any representation to the contrary is an offence. If you are located in Canada, this report has been made available to you based on your
representation that you are an “accredited investor” as such term is defined in National Instrument 45-106 Prospectus Exemptions and a “permitted client” as
such term is defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Under no circumstances is the
information contained herein to be construed as investment advice in any province or territory of Canada nor should it be construed as being tailored to the
needs of the recipient. Canadian recipients are advised that JM Financial Securities, Inc., JM Financial Institutional Securities Limited, their affiliates and authorized
agents are not responsible for, nor do they accept, any liability whatsoever for any direct or consequential loss arising from any use of this research report or the
information contained herein.

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