₹674 - That's What Analysts Think Dabur India Limited (NSE:DABUR) Is Worth After These Results

Dabur India Limited (NSE:DABUR) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Dabur India reported in line with analyst predictions, delivering revenues of ₹33b and statutory earnings per share of ₹2.82, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Dabur India after the latest results.

View our latest analysis for Dabur India

Taking into account the latest results, the consensus forecast from Dabur India's 41 analysts is for revenues of ₹135.8b in 2025. This reflects a reasonable 7.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 12% to ₹11.87. Before this earnings report, the analysts had been forecasting revenues of ₹135.9b and earnings per share (EPS) of ₹11.92 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.7% to ₹674. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Dabur India at ₹800 per share, while the most bearish prices it at ₹540. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Dabur India shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Dabur India'shistorical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 8.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.1% annually. So it's pretty clear that Dabur India is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Dabur India. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Dabur India analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Dabur India that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com