Edelweiss has a BUY on Dabur India with the following Outlook and Valuation,
Firm demand across categories, calibrated price hikes, new launches and long-term benefits from international acquisition of Hobi and Namaste would act as long term positives. On our FY13E and FY14E EPS estimate of Rs. 4.2 and Rs. 5.2, the stock is currently trading at a P/E of 25.5x and EV/EBITDA of 17.9x on FY13E basis and at a P/E of 20.6x and EV/EBITDA of 14.3x on FY14E basis. Given these attractive valuations and its growth prospects, we believe the stock offers upside potential in the near term.
Dabur India Stock Price Target is Rs 123
