Dabur Q3 FY25: 19% global Growth Ayurveda Expansion

Dabur India Limited – Q3 FY2025 Results

Market Metrics

Market Cap: ₹95,627 Cr

Current Price: ₹539

52W High/Low: ₹672 / 489

Key Ratios

P/E: 54.1

Book Value: ₹58.5

Dividend Yield: 1.02%

Returns & Growth

ROCE: 22.3%

ROE: 19.2%

Sales Growth (3Yrs): 9.06%

Financial Position

Debt: ₹1,752 Cr

Reserves: ₹10,185 Cr

Promoter Holding: 66.3%

Q3 FY2025 Performance Overview

Metric	Q3 FY25	Q3 FY24	YoY Growth
Revenue from Operations	₹3,355 Cr	₹3,255 Cr	+3.1%
Operating Profit	₹682 Cr	₹668 Cr	+2.1%
Operating Margin	20.3%	20.5%	-20 bps
Net Profit	₹522 Cr	₹514 Cr	+1.6%
A&P Spend	6.8%	7.5%	-70 bps

Segment Performance Analysis

Domestic Business (₹2,448 Cr, +1.4% YoY)

Foods & Beverages (48.2% of Sales)

Revenue: ₹1,110 Cr
Growth: +30% YoY
Strong performance in Hommade & Badshah spices
Beverages segment declined 10.3% due to weak festive demand

Healthcare (37.9% of Sales)

Revenue: ₹872 Cr
Health supplements declined 3.4%
Chyawanprash maintained market leadership
OTC & Ethical category remained flat

Home & Personal Care (11.8% of Sales)

Revenue: ₹273 Cr
Home Care: -10.3% YoY
Personal Care: +2.7% YoY
Market share gains in Oral Care

International Business (25% of Sales)

Revenue: ₹847 Cr (+18.9% CC Growth)
Egypt: +54.6% growth
Turkey: +28.2% growth
Bangladesh: +21.6% growth
MENA market: +17.5% growth

Strategic Initiatives & Capex Plans

Capital Expenditure

Expansion of Badshah spices production capacity
Investment in Ayurvedic product portfolio
Modernization of manufacturing facilities

Branding Efforts

Rural activation programs
Festival season campaigns (Kumbh Mela, Durga Puja)
Celebrity endorsements and digital marketing

Market Penetration Strategy

Focus on premium healthcare segments
Expansion of ayurvedic product range
Strengthening rural distribution network

Competitive Landscape & Risks

Key Competitors

Hindustan Unilever (HUL)
ITC Limited
Marico

Risk Factors

                    Inflationary pressures on raw materials
Increased competitive pricing pressure
Unpredictable weather impacting seasonal products
Currency fluctuations in international markets

                

Valuation & Investment Thesis

Current Valuation Metrics

Metric	Value	Industry Avg
P/E Ratio	54.1x	~45x
Price/Book	9.2x	~8x
Dividend Yield	1.02%	~1.5%

Growth Projections

Sales CAGR (3-5 Years): 8-10%
PAT CAGR (3-5 Years): 6-8%
Target Price (1 Year): ₹590-₹610

Investment Recommendation

                    Long-Term Buy Recommendation
                    Strong brand moat and rural resilience
Stable FMCG exposure with defensive characteristics
Premium valuation justified by market leadership
Robust international growth prospects

                

                    Near-Term Considerations
                    Current P/E of 54.1x above historical averages
Moderate earnings growth trajectory
Margin pressures from input costs
Competitive intensity in key segments

                

Growth Drivers & Future Outlook

Key Growth Catalysts

Rising demand for Ayurvedic & natural products
Expanding rural reach and distribution
Premiumization in healthcare & spices categories
Strong international market expansion

Digital Initiatives

E-commerce channel optimization
Direct-to-consumer (D2C) platforms
Digital-first product launches
Enhanced online customer engagement

Financial Projections

Metric	FY2025E	FY2026E
Revenue Growth	8-10%	10-12%
EBITDA Margin	20-21%	21-22%
PAT Growth	6-8%	8-10%

Management Commentary & Strategic Focus

Key Strategic Priorities

Portfolio premiumization and innovation
Cost optimization and efficiency initiatives
Market share gains in core categories
International business expansion

Innovation Pipeline

New product launches in premium Ayurvedic segment
Extension of Badshah spices portfolio
Enhanced health supplements range
Modern format personal care products

Technical Analysis

Price Trends

Current Price: ₹539
52-Week Range: ₹489 – ₹672
200-Day Moving Average: ₹545
Support Levels: ₹520, ₹500
Resistance Levels: ₹560, ₹580

Conclusion

Dabur India continues to demonstrate resilience in a challenging market environment, supported by its strong brand portfolio and diversified presence across categories. The company’s focus on premium segments, rural expansion, and international growth presents significant opportunities for long-term value creation.

                Key Investment Considerations
                Strong brand equity in natural and Ayurvedic segments
Robust international business growth
Premium valuation reflecting market leadership
Potential for margin expansion through premiumization

            

Disclaimer: This report is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. Past performance is not indicative of future returns. The information contained herein is believed to be reliable but cannot be guaranteed for completeness or accuracy.