Buy Dabur India - Karvy

Dabur India: (CMP: Rs. 132; Target Price: Rs. 150) - BUY

Strong presence in domestic market has enabled Dabur to maintain high revenue growth momentum. On the back of initiative to expand rural distribution network, we expect Dabur to report better sales growth in the rural business in ensuing quarters. Besides, its global business is also expected to maintain high growth momentum as Dabur's overseas acquired entities that Hobi Kozmetic and Namaste Group have been integrated completely and their portfolio is being extended across geographies.

Outlook & Valuation: Valuing the stock on 24x P/E on 24-month forward earnings, we initiate coverage on Dabur with "BUY" recommendation with a target price of Rs. 150 apiece.

Source : Equity Bulls

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