Anand Rathi has upgraded Dabur India to a buy rating with a target price of ₹550 in its research report dated July 29, 2026, representing a significant upgrade from previous recommendations. This contrasts with Prabhudas Lilladher's hold rating and ₹492 target price, indicating mixed brokerage sentiment despite strong operational performance. Anand Rathi's upgrade reflects confidence in the company's premiumisation strategy and operational improvements, while Prabhudas Lilladher maintains a more cautious stance based on current market conditions.
Dabur started FY27 on a strong note with consolidated revenue rising by ~11% year-on-year to ₹37.6 billion in Q1FY27, which was in-line with street estimates of ₹37.3 billion. As reported by Anand Rathi, this growth was led by broad-based growth in domestic and international businesses despite weather adversities, input inflation and geopolitical headwinds. India FMCG volume growth came in at 5%, marginally below expectations of ~6%, led by strong double-digit growth in Hair Care Products (HPC), while Food & Beverages (F&B) recovered sharply in May-June after weather-related weakness in April-May. The management has reiterated confidence in delivering double-digit consolidated revenue growth in FY27 driven by premiumisation, innovation, go-to-market transformation (Project Saksham), and pricing strategies.
According to Anand Rathi's research, Dabur remains well-placed to deliver healthy earnings growth aided by premiumisation, pricing and improved operating leverage. The company's optimistic outlook is supported by healthy demand outlook for Hair oil & Food segment and steady margin guidance in an inflationary environment driven by cost savings and premiumization. Rural demand continued to outpace urban demand, while the international business remained strong. However, the company faces potential disruptions from Super El Nino and current geopolitical scenario that could impact growth in both India and Middle East markets. Dabur is indicating increased focus on acquisitions, though actual execution remains to be monitored.
Anand Rathi estimates a CAGR of 10.1% in Sales and 11.3% in EPS over FY27-28. The brokerage has valued the stock at 42x FY28e EPS (versus 45x FY28e EPS previously), maintaining a buy rating with a target price of ₹550. The sustained double digit growth and success in D2C acquisitions remain key factors for potential re-rating of the stock in the long term. Prabhudas Lilladher estimates similar growth metrics with a CAGR of 10.1% in Sales and 11.3% in EPS over FY27-28, though their target price of ₹492 reflects a more conservative valuation approach.
