Dabur India Limited: Comprehensive Stock Analysis Report | Scrolls

by KarNivesh | 21 August, 2025

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Overview Dabur India Limited is one of India’s oldest and most respected FMCG (Fast-Moving Consumer Goods) companies, with a legacy of over 140 years. Founded in 1884 as a small pharmacy, it has grown into the world’s largest Ayurvedic and natural healthcare company with a market value of about ₹93,634 crore. Dabur offers more than 250 herbal and Ayurvedic products across categories such as hair care, oral care, health supplements, skincare, home care, and packaged foods. Its wide distribution network now covers 8.4 million outlets, reaching 80% of Indian households and over 100 countries worldwide.

In recent years, Dabur has focused on expanding in rural India and strengthening its global presence. Rural sales have been growing faster than urban sales, supported by the company’s increased distribution reach in villages. International business is also doing well, with strong growth in markets like the UK, Turkey, and Africa. To meet rising demand, Dabur is setting up a new ₹135 crore manufacturing unit in South India, while also adopting an “e-commerce-first” approach by launching products online before retail stores.

Financially, Dabur has shown steady revenue growth, rising from ₹9,493 crore in 2021 to ₹12,563 crore in 2025 (about 7.3% annual growth). However, profits have come under pressure due to higher raw material costs like palm oil, copra, and fruit concentrates. Net profit margins dropped from 17.8% in 2021 to 14.1% in 2025, while Return on Equity (ROE) fell from 24.1% to 17%. Despite these challenges, Dabur remains financially healthy with very low debt (debt-to-equity ratio of just 0.088) and has been reducing borrowings, from ₹1,365 crore in 2024 to ₹950 crore in 2025. The company also rewards shareholders with dividends, offering a 1.5% dividend yield and a high payout ratio of nearly 80%.

Dabur India's financial performance showing revenue, profits, and income trends over five years (2021-2025)

The shareholding pattern shows strong promoter confidence, with promoters holding 66.2% of shares. Institutional investors such as mutual funds, foreign investors, and insurance companies also hold a significant 28%, reflecting trust in Dabur’s long-term potential. Importantly, promoters have not pledged their shares, which adds to financial stability. On valuation, Dabur’s stock trades at a PE ratio of 52.7, slightly cheaper than the FMCG sector average of 55.6, but its PB ratio of 8.5 is higher than peers, meaning investors pay a premium for its brand and position. Compared with competitors like Hindustan Unilever, Godrej Consumer, Marico, and Emami, Dabur’s valuation looks reasonable, though not the cheapest. Its stock price has seen ups and downs, hitting a high of ₹672 in late 2023 before dropping to a low of ₹433.30. Currently, it trades near ₹528, showing partial recovery but still below its peak.

Looking ahead, Dabur’s key growth drivers include rural expansion, international growth, digital transformation, and product innovation in health and wellness. Risks include rising competition (especially from Patanjali and other Ayurvedic brands), raw material inflation, seasonal dependency for products like Chyawanprash, and overall FMCG demand slowdown. Still, with its strong brand, deep distribution, financial discipline, and focus on Ayurveda, Dabur remains a stable investment option for long-term, conservative investors seeking steady growth and dividends in India’s FMCG sector.