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Check Before You Invest : Dabur India Ltd

BSE: 500096 NSE: DABUR ISIN: INE016A01026
  |   Sector:  FMCG   |   Industry:  Household & Personal Products

Snapshot

Q.1 Which industry/sub-sector does Dabur India Ltd belong to?
Dabur India Ltd belongs to the FMCG sector, operating specifically within the Household & Personal Products segment.
Q.2 Is Dabur India Ltd a good quality company?
Dabur India Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Dabur India Ltd undervalued or overvalued?
Dabur India Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 45.64 54.44
Price to Book 7.57 9.63
Price to Sales 6.56 7.76
EV to EBITDA 28.5 33.73
Q.4 Is Dabur India Ltd a good buy now?
Dabur India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Dabur India Ltd?
Dabur India Ltd revenue growth is 1.3% for FY-2025, which is below its 5-year CAGR of 7.66%, indicating slower growth.

Q.2 Gross Profit margin of Dabur India Ltd?
Dabur India Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.6% for FY-2025, which is below its 5-year median of 19.7%, indicating decreasing margins.

Q.3 Operating Profit Margin of Dabur India Ltd?
Dabur India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.42% for FY-2025, which is in line with its 5-year median of 19.34% indicating stable margins.

Q.4 Net Profit Margin of Dabur India Ltd?
Dabur India Ltd Net Profit Margin is 13.85% for FY-2025, is below its 5-year median of 14.76%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 18.6 19.7
Operating Profit Margin (%) 18.42 19.34
Net Profit Margin (%) 13.85 14.76

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Dabur India Ltd?
Dabur India Ltd Return on Asset is 11.1%, which is below its 5-year historical median of 13.12%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Dabur India Ltd?
Dabur India Ltd Return on capital employed is 21.47% for FY-2025, which is below its 5-year historical median of 23.9%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Dabur India Ltd?
Dabur India Ltd Return on equity is 17% for FY-2025, which is below its 5-year historical median of 19.84%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Dabur India Ltd?
Dabur India Ltd Cash conversion cycle is -16 days, below its 5-year historical median of -9 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.93 1
ROE (%) 17 19.84
ROCE (%) 21.47 23.9
Cash Conversion Cycle -16 days -9 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Dabur India Ltd?
Dabur India Ltd Debt-to-Equity ratio is 0.07, which is lower the industry average of 0.10, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Dabur India Ltd?
Dabur India Ltd Debt to cash flow from operations is 0.37, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Dabur India Ltd?

Q.1 Promoter shareholding and pledge status of Dabur India Ltd?
Promoters hold 66.25% of the Dabur India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Dabur India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Dabur India Ltd vs industry peers?
Dabur India Ltd revenue CAGR is 7.66%, compared to the industry median CAGR of 7.66%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 1.3 7.7
Gross Profit Growth (%) -2 6.9
Operating Profit Growth (%) -3.5 7.6
Net Profit Growth (%) -3.9 8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.93 1
ROE (%) 17 74.4
ROCE (%) 21.47 98.37
Cash Conversion Cycle (days) -16.15 -42

Valuation & price assessment

Q.1 Stock return of Dabur India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 5.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
5.3% -1.5% -2.1% 5.4%
Q.2 Valuation ratios of Dabur India Ltd vs historical?
The current P/E ratio of 45.64 is lower than its historical median of 54.44, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 45.64 54.44 44.15
Price to Book 7.57 9.63 3.71
Price to Sales 6.56 7.76 4.58
EV to EBITDA 28.5 33.73 23.48

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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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