Dabur India (DABUR IN) – Q4FY26 Result Update – Moderate outlook, valuations limit major downside – HOLD
Published on 08 May 2026
Dabur has given cautiously optimistic outlook in demand led by 1) Healthy demand outlook for HPC & F&B segment 2) Sustained margin guidance in an inflationary environment driven by cost savings and lower ad spends. 4Q numbers showed some pressure on sales in Healthcare, Foods and IBD while HPC grew sales by 16.8%.
Dabur continues to suffer as one or the other segment continues to drag performance. While HPC outlook appears better, Hair care growth rate seems unsustainable. While FY27 outlook appears better than in recent past, Dabur’s portfolio does not indicate scope of sustained double-digit growth. Rural markets continue to outpace urban markets, however international markets still remains a concern with ongoing geopolitical scenario.
We estimate a CAGR of 10% in Sales and 11.2% in EPS over FY27-28. Dabur trades at 35.4xFY28 EPS (LPA of 42), which limits major downside in stock. However, we also don’t see a scope of any material acceleration in growth or reason for re-rating. Retain Hold with a target price of Rs491 (37xFY28 EPS, Rs 467 earlier).
