Dabur India Limited

Consumer Defensive — Household & Personal Products · NSE

₹385.00+₹1.70 (+0.44%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Dabur India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Dabur India Limited operates as a fast moving consumer goods company worldwide. It operates through Consumer Care Business, Foods Business, Retail Business, and Other segments.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees4,768

Annual revenue₹13,042 Cr

How does it make money?

Turns over ₹13,042 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 4,768 employees supports ₹2.74 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin21.8%

Net margin14.5%

Revenue / employee₹2.74 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

ITC LTDP/E 16.6x · ROE 27.4%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 16.6% against a peer median of 27.4% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE20.8%

ROE16.6%

Peer median ROE27.4%

What is the outlook?

35 analysts covering the stock expect revenue to grow about 8.4% and earnings to grow about 10.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+8.4%

Est. earnings growth+10.7%

Analysts35

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +14% while net margin moved -3% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+14%

Margin effect-3%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.5% — barely ahead of inflation
✗ Profit CAGR of only 3.5%

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

56/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

34.7x

3Y Median

51.0x

40 monthly readings · mean 50.4x · range 35.7x–66.1x

Sector Median

42.5x

median of 3 sector peers

🟢Current valuation is approximately 32% below its 3y median of 51.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 18% below the peer median of 42.5x.

vs. its own history

Cheap

51.0x median over 40 months · -32%

vs. sector peers

Fair

42.5x median of 3 peers · -18%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

34.7x

P/B

5.98x

EV/EBITDA

24.4x

PEG

9.79

Dividend Yield

2.14%

What's Good / What's Bad

🟢 What's Going Well5

Cash generation is improving
Free cash flow is up 120% over 3 years.
High return on capital employed
ROCE of 20.8% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 34.7x the stock trades 32% below its own median of 51.0x.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 32% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹2,158 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 4.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 20%✓ 21.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.5% CAGR
Latest reported year was 10.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹2,158 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 20.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

8 good · 2 neutral · 1 weak

Market Cap

₹68,297 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

34.7x

Fair

Fairly valued against the generic band

P/B Ratio

5.98x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹11.1

Profitable

Profitable on a per-share basis

ROE

16.6%

Strong

Strong capital efficiency

ROCE

20.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

10.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

15.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.14%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹2,158 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹385

P/E (Forward)

29.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

16.5%

Good

Healthy core-business profitability

Net Margin

14.6%

Good

Strong bottom-line conversion

Current Ratio

1.70

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

383.7 / 389.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11,427 Cr	₹12,262 Cr	₹12,400 Cr	₹13,042 Cr	+4.5%
EBITDA	₹2,561 Cr	₹2,827 Cr	₹2,748 Cr	₹2,849 Cr	+3.6%
EBITDA Margin	22.4%	23.1%	22.2%	21.8%	—
PAT (Net Profit)	₹1,707 Cr	₹1,843 Cr	₹1,768 Cr	₹1,895 Cr	+3.5%
EPS	₹9.61	₹10.38	₹9.95	₹10.66	+3.5%
ROE	19.0%	18.7%	16.4%	16.6%	—
ROCE	22.8%	22.1%	20.2%	20.8%	—
Total Debt	₹1,174 Cr	₹1,365 Cr	₹950 Cr	₹1,287 Cr	+3.1%
Free Cash Flow	₹979 Cr	₹1,450 Cr	₹1,417 Cr	₹2,158 Cr	+30.1%

🟢 Revenue has grown at 4.5% a year over 3 years.

🟢 EBITDA has grown at 3.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 21.8% over 3 years.

🟢 PAT (Net Profit) has grown at 3.5% a year over 3 years.

🟢 EPS has grown at 3.5% a year over 3 years.

🔴 ROE has fallen from 19.0% to 16.6% over 3 years (-2.4 pts).

🔴 ROCE has fallen from 22.8% to 20.8% over 3 years (-2.0 pts).

🔴 Total Debt has grown at 3.1% a year over 3 years.

🟢 Free Cash Flow has grown at 30.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹17,480 Cr

Total Liabilities

₹5,677 Cr

Total Debt

₹1,287 Cr

Cash & Equivalents

₹199 Cr

Operating Cash Flow

₹2,579 Cr

Capex

-₹420 Cr

Shareholding (proxy)

Institutional Holding

22.3%

Insider Holding

67.7%

Corporate Actions

Next Earnings

04 Nov 2026

Dividend Rate

₹8.25

Ex-Dividend Date

17 Jul 2026

Analyst Consensus

Recommendations

22 Buy · 11 Hold · 4 Sell

Target Price (Mean)

₹489.97

+27.3% vs CMP

Target Range

₹375 – ₹625

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

2 mixed4 general

Dabur India Share Price News: Today’s Move and Valuation

Univest, 14 Oct

Stocks To Watch Next Week (July 13-17): HDFC Bank, Dabur, Tata Steel, Coal India Among Key Names to Track

Goodreturns, 17 Oct

Stock Radar: Dabur India stock showing signs of bottoming out after falling by about 30% from highs; time

The Economic Times, 23 Sept

Dabur India Q2FY27 Results: Global growth high teens, margins under pressure

scanx.trade, 13 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Robust recovery likely to help sustain Dabur India's Q2FY27 growth

Business Standard, 12 Oct

Dabur India shares decline 4.6% after FSSAI action over '100%' claims: All you need to know

Upstox, 04 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong15.4/20

🟢Financial HealthStrong17.8/20

🔴GrowthWeak7.4/20

🟢ProfitabilityStrong11.9/15

🟡ValuationFair8.8/15

🟢RiskLow7.5/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓EBITDA margin holds above 20%21.8%
✓Revenue growth stays above 4% a year4.5% CAGR
✓Free cash flow remains positive₹2,158 Cr
✓Debt / EBITDA stays below 2x0.5x
✓ROCE stays above 18%20.8%