Dabur India
Financial Analysis
Executive
Summary
Dabur Ltd is an Indian multinational
consumer goods company, founded by S.
K. Burman and headquartered in
Ghaziabad. It manufactures Ayurvedic
products and fast-moving consumer
goods. Dabur derives around 60% of its
revenue from the consumer care business,
11% from the food business and remaining
from the international business unit.
Dabur operates primarily in the following
segments:
Healthcare Products: This includes
Ayurvedic medicines, herbal supplements,
and OTC products under the Dabur,
Honitus, and Shilajit brands.
Personal Care: This segment offers hair
care, skin care, and oral care products. Key
brands include Dabur Amla, Dabur Red,
Vatika, and Fem.
Foods: Dabur's food segment comprises
juices, beverages, and culinary products,
marketed under brands like Real and
Hommade.
Home Care: Products in this category
include disinfectants, air fresheners, and
insect repellents, marketed under brands
like Odonil and Sanifresh
Mergers and Acquisitions Revenue Sources
Middle East Asia
Company acquired ~51% stake in Badshah 26% 22%
Masala Private Limited w.e.f. January 2, 2023, a
branded player in the spices and condiments
category with a major presence in Gujarat,
Maharashtra, and Telangana, at for ~Rs. 588 crs.
Products America
16%
The company offers over 400 products across
21 categories and over 1,000 SKUs. Africa
24%
Europe
12%
Stock
Analysis
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Electi
Regression Analysis
Financial
Statements
Profit and Loss Statement
Revenue (in thousand Crores)
Net Income (in thousand Crores)
14.0 Material Cost% Manufacturing Cost% Employee Cost%
12.0 2020
10.0
2021
8.0
2022
6.0
2023
4.0
2.0
2024
0.0 0.0 20.0 40.0 60.0 80.0 100.0
2020 2021 2022 2023 2024
Cost of Materials
Purchase of Stock-In Trade Interest (in Crores)
Operating and Direct Expanses
Depreciation (in Crores)
Changes In Inventories Of FGWIP And Stock I… 400
Employee Benefit Expenses
Finance Costs
Depreciation And Amortisation Expenses
Other Expenses 300
12000
10000
200
8000
6000
100
4000
2000
0
2020 2021 2022 2023 2024
0
Expenses
Key Highlights from P&L
1. Revenue Growth 3. Profitability
Revenue from operations increased steadily from Despite growing revenue, the total expenses
₹8,603.92 Cr. in FY 2020 to ₹12,261.65 Cr. in FY 2024, have also grown from ₹7,162.28 Cr. in FY 2020
reflecting a CAGR of around 9.25%. to ₹10,527.17 Cr. in FY 2024. However, profit
before tax (PBT) has remained stable at around
There is a consistent rise in total revenue, reaching ₹2,359.25 Cr. in FY 2024 compared to ₹1,727.65
₹12,886.42 Cr. in FY 2024 from ₹8,989.93 Cr. in FY 2020, Cr. in FY 2020.
showcasing strong top-line growth.’
The profit after tax (PAT) also showed
2. Cost Structure consistent growth, rising from ₹1,447.93 Cr. in
FY 2020 to ₹1,811.82 Cr. in FY 2024, reflecting
Cost of Materials Consumed grew from ₹3,731.71 Cr. in Dabur's ability to sustain profitability despite
FY 2020 to ₹5,186.90 Cr. in FY 2024, showing an increasing costs.
increase in raw material costs, likely driven by inflation
and rising commodity prices. EPS (Earnings Per Share) held steady at ₹10
from FY 2021 to FY 2024, after rising from ₹8 in
Purchases of Stock-in-Trade surged significantly from FY 2020, implying strong earnings consistency.
₹674.62 Cr. in FY 2020 to ₹1,211.11 Cr. in FY 2024,
suggesting a focus on traded goods or increased
dependency on external products.
Key Highlights from P&L
5. Taxation
4. Dividend Policy
Tax expenses increased from ₹279.72 Cr. in FY 2020
Dabur has consistently increased its dividend payouts,
to ₹547.43 Cr. in FY 2024, in line with the rising
from ₹617.78 Cr. in FY 2020 to ₹965.76 Cr. in FY 2024,
profitability.
signaling a shareholder-friendly approach and
reflecting solid cash flows.
There has been volatility in deferred tax, which saw
significant changes like a positive entry of ₹-185.70
Dividend payouts as a percentage of net profits remain
Cr. in FY 2020 and declining to ₹7.90 Cr. in FY 2024.
substantial, indicating a steady return to investors.
Insights from P&L
Revenue expansion has been robust, driven by a mix of organic growth and potentially new
product lines or segments.
While material costs and stock-in-trade purchases increased, the company maintained a good
balance between cost control and profitability, evidenced by relatively stable profit margins.
There was prudent management of tax liabilities and a clear focus on rewarding shareholders
through dividends, hinting at a strong cash position.
The stability in EPS reflects sustained profitability and efficient capital utilization.
Balance Sheet
Key Highlights from Balance Sheet
1. Shareholders’ Funds 3. Current Liabilities
Reserves and Surplus have grown consistently from Trade Payables grew significantly from ₹1,482.15 Cr. in
₹6,429.04 Cr. in FY 2020 to ₹9,689.10 Cr. in FY 2024, FY 2020 to ₹2,421.71 Cr. in FY 2024, likely a reflection of
indicating strong retained earnings and reinvestment increased scale and business operations.
in the business. This represents a CAGR of around
10.73% for reserves. Total Current Liabilities have steadily increased from
₹2,463.88 Cr. in FY 2020 to ₹3,930.43 Cr. in FY 2024,
Total Shareholders’ Funds increased to ₹9,866.30 Cr. in reflecting higher short-term obligations due to growth
FY 2024 from ₹6,605.75 Cr. in FY 2020, demonstrating in operations.
solid growth in equity and profitability.
2. Non-Current Liabilities
Long-Term Borrowings have shown a significant
increase, rising from ₹162.89 Cr. in FY 2020 to ₹535.97
Cr. in FY 2024. This could indicate increased debt for
funding expansion or strategic initiatives.
Balance Sheet
Financial Ratios
Analysis
Financial Ratios
Sector and Peers Comparison
Should you invest?
Dabur India stock price today is Rs 644.40.
PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for
every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it
depends on other factors too). Dabur India has a PE ratio of 60.78 which is high and comparatively
overvalued .
Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a return on its
investment in assets. In other words, ROA shows how efficiently a company can convert the money used
to purchase assets into net income or profits. Dabur India has ROA of 12.59 % which is a bad sign for
future performance but according to industry standards, the value is a good sign. (higher values are
always desirable)
Sales growth: - Dabur India has reported revenue growth of 7.58 % which is poor in relation to its
growth and performance.
Operating Margin: - This will tell you about the operational efficiency of the company. The operating
margin of Dabur India for the current financial year is 18.73 %.
Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the stock. The
current year dividend for Dabur India is Rs 5.50 and the yield is 0.85 %.
Earnings Per Share: - It tells us how much profit is allocated to to each outstanding share of a common
stock. The latest EPS of Dabur India is Rs 10.60 . The higher the EPS, the better it is for investors.
Debt to Equity: Dabur has a very low Debt to Equity ratio of 0.1 which is ideal for investors.
Based on our analysis, Dabur India Ltd is a safe investment due to a low debt to equity
ratio, high interest coverage ratio, consistent performance, high promoter holding of 66%
and also a healthy inflow of cash from operating activities.
Thank You!
Divyanshu Thakur - 15B Gaurav Acharya - 17B
Pancham Dua - 31B Sanya Bidani - 40B
