Dabur India Limited

DABUR.BO•household-personal-products

Current Price

544.40INR

per share

Fair Value

172.87INR

Overvalued

214.9%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 7.60%, higher than industry average of 6.57%.

Growth Trajectory

Profitability

In the growth phase company makes 18.49% profit on every dollar of sales, higher than industry average of 16.02%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.75% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

295.14B INR

Equity Value

306.37B INR

FCF Yield

22.61%

Average ROIC

20.90%

Cost of Capital

8.15%

P/E Ratio

51.54x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	124.55B INR	122.62B INR
Operating Income or EBIT	24.31B INR	24.86B INR
Interest Expense	1.49B INR	1.10B INR
Book Value Of Equity	108.01B INR	98.66B INR
Book Value Of Debt	9.50B INR	13.65B INR
Cash and Marketable Securities	25.10B INR	22.05B INR
Number of Shares Outstanding	1.77B	--
Minority interests	4.37B INR	0 INR
Current Stock Price	544.40 INR	--
Effective Tax Rate	23.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

-4.99%

1.58%Company

6.57%Industry

Below Industry

Operating Margin

+3.49%

19.51%Company

16.02%Industry

Above Industry

Dabur India Limited demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.87%

Reinvestment Rate

52.36%

Terminal value represents 55% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	162.33B INR	Add
Present Value (Cash Flow Over Next 10 Years)	132.80B INR	Add
Value of Operating Assets	295.14B INR	Sub-total
Debt	9.50B INR	Subtract
Minority Interests	4.36B INR	Subtract
Cash	25.09B INR	Add
Value of Equity	306.37B INR	Sub-total
Number of Shares	1.77B shares	Divisor
Estimated Value per Share (Fair Value)	172.86 INR	Total
Current Market Price	544.40 INR	Reference

Financial Projections

Total FCF Present Value

132.80B INR

Avg Revenue Growth

6.06%

Avg Operating Margin

18.25%

Avg ROIC

20.90%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	135.21B INR	145.49B INR	156.55B INR	168.44B INR	181.24B INR	193.95B INR	206.40B INR	218.44B INR	229.88B INR	240.57B INR	251.76B INR
Growth Rate	8.55%	7.59%	7.59%	7.59%	7.59%	7.00%	6.41%	5.82%	5.23%	4.65%	4.65%
PROFITABILITY
Operating Income	26.38B INR	27.39B INR	28.94B INR	30.56B INR	32.26B INR	34.52B INR	36.74B INR	38.88B INR	40.92B INR	42.82B INR	44.81B INR
Operating Margin	19.51%	18.82%	18.48%	18.14%	17.80%	17.80%	17.80%	17.80%	17.80%	17.80%	17.80%
EBIT (1-tax)	20.31B INR	21.09B INR	22.28B INR	23.53B INR	24.84B INR	26.10B INR	27.26B INR	28.30B INR	29.21B INR	29.97B INR	31.37B INR
CASH FLOW
Reinvestment	4.12B INR	4.43B INR	4.77B INR	5.13B INR	5.09B INR	5.61B INR	5.42B INR	5.16B INR	4.82B INR	5.04B INR	16.42B INR
Free Cash Flow	16.19B INR	16.65B INR	17.51B INR	18.39B INR	19.74B INR	20.48B INR	21.83B INR	23.14B INR	24.39B INR	24.93B INR	14.94B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	353.27B INR
Present Value	15.03B INR	14.34B INR	13.99B INR	13.64B INR	13.59B INR	13.06B INR	12.87B INR	12.58B INR	12.20B INR	11.45B INR	—
EFFICIENCY
ROIC	21.98%	21.85%	22.07%	22.25%	22.40%	22.50%	22.42%	22.28%	22.10%	21.88%	8.87%
Cost of Capital	7.74%	7.74%	7.74%	7.74%	7.74%	7.97%	8.20%	8.42%	8.65%	8.87%	8.88%
Sales/Capital	2.49x	2.49x	2.49x	2.49x	2.49x	2.21x	2.21x	2.21x	2.21x	2.21x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)