Dabur India (DABUR)

FairStock Score: 51/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

Strengths

• Strong financial health: low D/E of 0.12 and high Piotroski F-Score of 8/9
• High returns on capital: ROE of 17.10% and ROCE of 20.24%
• Healthy free cash flow of ₹1,539 Cr and stable promoter holding of 66.23%
• Safe balance sheet supported by Altman Z-Score of 5.34

Concerns

• Very expensive valuation: P/E of 49.49, EV/EBITDA of 44.87, and P/B of 7.55
• Stagnant growth: sales growth of just 1.65%, profit growth of -2.10%, and 5-year revenue CAGR of 5.61%
• Price is far above conservative estimates: Graham Number ₹119.48 and DCF intrinsic value ₹155.33 offer no margin of safety
• Low dividend yield of 1.54% provides limited downside support

AI Analysis

At ₹460, with a market cap of ₹91,966 Cr, the market is paying a premium for a company that is hardly growing. Dabur’s balance sheet is unquestionably sound: debt-to-equity is only 0.12, return on equity is 17.10%, ROCE is 20.24%, and it generates ₹1,539 Cr of free cash flow. The Piotroski score of 8/9 also points to financial discipline, and promoter holding of 66.23% is reassuring. But a wonderful business can still be a poor investment at a foolish price. The P/E of 49.49 and EV/EBITDA of 44.87 ask Dalal Street to believe growth will accelerate soon, yet the latest figures show sales growth of just 1.65% and profit growth of -2.10%. Even the five-year revenue CAGR is only 5.61%. This is not a fast grower. Graham would compare price to conservative value; the Graham Number is just ₹119.48, and a DCF estimate of ₹155.33 leaves a margin of safety of roughly -334%. At 7.55 times book value, with a dividend yield of only 1.54%, I am not being paid to wait. Dabur is a good, slow-growth Indian consumer stalwart, but the current valuation is far above what a disciplined value investor should pay. I will stay patient and wait for a much lower price or a genuine reacceleration of earnings before considering this one.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer