DABUR INDIA LTD

(DABUR | BSE Code: 500096)

INR 537.4
52 Week (High - INR 597.10 & Low - 503.65)

About the company

Dabur Ltd is an Indian multinational consumer goods company, founded by S. K. Burman and headquartered in
Ghaziabad. It manufactures Ayurvedic medicine and natural consumer products, and is one of the largest fast-
moving consumer goods (FMCG) companies in India. Dabur derives around 60% of its revenue from the
consumer care business, 11% from the food business and remaining from the international business unit.

Financial Summary
Revenues (INR Crs.) Net Profit (INR Crs.) Average Total Assets (INR Crs.)

1,693 1,739 1,707 12,968

11,530 11,559
10,889 1,445
9,562 10,085
8,685 8,887

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Return on Equity (%) Return on Asset (%) Financial Leverage

23.62% 23.73%
21.68% 16.79%
19.67% 16.26%
15.05% 1.49x
13.16%
1.45x
1.44x
1.41x

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Recent Updates
• Dabur India's revenue for the third quarter stood at ₹3,255 crore, up 7% as against ₹3,043 crore in the same quarter a
year ago. It was driven by steady performance of both the Home and Personal care and Food and Beverages businesses.
The third quarter revenue growth stands at 10% on constant currency basis.
• The HPC segment accounted for 51.5% of domestic sales in the September quarter. The healthcare and food and
beverage businesses accounted for 30.3% and 18.3% of domestic sales, respectively.
• The company reported an EBITDA of ₹667.6 crore during the third quarter, up 9.4% from ₹610 crore in the same quarter
last year, while margin expanded by 5 basis points to 20.5%.
• Category-wise, Dabur's digestives business ended the quarter with an over 15% growth while the Ayurvedic Ethicals
business grew by nearly 7% in Q3. Dabur's Shampoo and Post-Wash category reported an over 11% growth. The
Toothpaste business ended the quarter with an industry leading over 8% jump, backed by Toothpaste Volume growth of
5%.
• The Home Care business reported a 7% growth while the Beverages business returned to the growth trajectory and
ended the quarter with a 7% growth. The Foods business, including Badshah, ended the quarter with a 22% growth.
• Dabur's international business reported a growth of 11.7% in constant currency terms. The Nigeria business grew by
52%, while the Turkey business was up 44% and the Egypt business ended with a 43% growth.
Dupont Analysis - Return on Equity & Return on Assets
Return on Equity (ROE)
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 1,276.9 1,354.4 1,442.3 1,445.0 1,693.3 1,739.2 1,707.2
Average Shareholder Equity 4,509.0 5,277.0 5,669.1 6,118.7 7,134.6 8,022.4 8,677.3
Return on Equity 28.32% 25.67% 25.44% 23.62% 23.73% 21.68% 19.67%

ROE - Dupont Equation

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 1,276.9 1,354.4 1,442.3 1,445.0 1,693.3 1,739.2 1,707.2
Revenue 7,613.6 7,721.9 8,515.0 8,684.6 9,561.7 10,888.7 11,529.9
Net Profit Margin (A) 16.77% 17.54% 16.94% 16.64% 17.71% 15.97% 14.81%

Revenue 7,613.6 7,721.9 8,515.0 8,684.6 9,561.7 10,888.7 11,529.9

Average Total Asset 7,332.3 8,216.9 8,569.1 8,886.6 10,084.9 11,558.5 12,968.1
Asset Turnover Ratio (B) 1.0x 0.9x 1.0x 1.0x 0.9x 0.9x 0.9x

Average Total Asset 7,332.3 8,216.9 8,569.1 8,886.6 10,084.9 11,558.5 12,968.1
Average Shareholder Equity 4,509.0 5,277.0 5,669.1 6,118.7 7,134.6 8,022.4 8,677.3
Equity Multiplier (C) 1.63x 1.56x 1.51x 1.45x 1.41x 1.44x 1.49x

Return on Equity (A*B*C) 28.32% 25.67% 25.44% 23.62% 23.73% 21.68% 19.67%

Return on Asset
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 1,276.9 1,354.4 1,442.3 1,445.0 1,693.3 1,739.2 1,707.2
Average Total Asset 7,332.3 8,216.9 8,569.1 8,886.6 10,084.9 11,558.5 12,968.1
Return on Asset 17.42% 16.48% 16.83% 16.26% 16.79% 15.05% 13.16%

ROA - Dupont Equation

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 1,276.9 1,354.4 1,442.3 1,445.0 1,693.3 1,739.2 1,707.2
Revenue 7,613.6 7,721.9 8,515.0 8,684.6 9,561.7 10,888.7 11,529.9
Net Profit Margin (A) 16.77% 17.54% 16.94% 16.64% 17.71% 15.97% 14.81%

Revenue 7,613.6 7,721.9 8,515.0 8,684.6 9,561.7 10,888.7 11,529.9

Average Total Asset 7,332.3 8,216.9 8,569.1 8,886.6 10,084.9 11,558.5 12,968.1
Asset Turnover Ratio (B) 1.0x 0.9x 1.0x 1.0x 0.9x 0.9x 0.9x

Return on Asset (A*B) 17.42% 16.48% 16.83% 16.26% 16.79% 15.05% 13.16%

Dupont Summary
• ROE of Dabur India has decreased signifiicantly from 28.32% in March 2017 to 19.67% in March 2023. This is the lowest
ROE that Dabur India has recorded in the past 7 years.
• This is because Dabur India has been experiencing a fall in all the 3 important indicators i.e Net Profit Margin, Asset
Turnover Ratio and Operating Leverage. While Asset Efficiency has expirienced a marginal decline, there has been a
considerable fall in NPM from 16.77% in March 2017 to 14.81% in March 2023. Along with NPM decline, Operating
Leverage has also played a major role because it has fallen from 1.63x to 1.49x on the back of increasing reserves in the
company's equity.
• ROA of Dabur India has also decreased from 17.42% in March 2017 to 13.16% in March 2023. While there has been
marginal decline in Asset Efficiency, the prominent reason for decrease in ROA is fall in Net Profit Margins.

Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not liable for
any losses due to actions taken basis this report. It is advisable to consult SEBI registered reasearch analyst before making any investments