Prabhudas Lilladher's research report on DaburDabur has reported 2.5% decline in standalone volumes led by sales decline in Foods (Supply Disruption in Nepal), Honey/ Chyawanprash (late winters and Patanjali’s competition) and Digestives (unorganised competition). Lower input costs and 56% higher other income enabled 12.6% PAT growth. Dabur is looking at sustaining innovations to compete with Patanjali but expects market for herbal products to expand providing enough room for growth. Dabur is looking at base case volume growth of 5%, however monsoons and rural stimulus can accelerate it significantly. IBD growth will be led by Namaste, GCC remains a little uncertain due to political and currency related challenges. We are Cutting FY17 and FY18 EPS estimates by 6.7‐8.5% to factor in the impact of lower sales growth and competition and arrive at 13.5% PAT CAGR over FY16‐18. Maintain BuyFor all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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