FMCG major Dabur is likely to be a key beneficiary of increasing consumer focus on healthy lifestyles and the government's push for Ayurvedic medicines in the country Also, the company's new management has transformed its prospects and laid the foundations for long-term growth, global brokerage CLSA said in a report.

Share Market Live

NSE

CLSA has reiterated a ‘buy’ rating for Dabur with a target price of Rs 650 per share.

The brokerage is of the view that the company is not only a play on the increasing consumer focus on healthy lifestyles but also on government efforts to push Ayurvedic medicine.

"We expect Dabur to sustain its market-share gains and enjoy a 19 percent revenue compound annual growth rate (CAGR) for its healthcare business between the 2020 and 2023 fiscals.”

Highlighting that the fresh leadership has been driving the company’s aggressive strategic plans, the brokerage firm said that the new management has laid the foundations for long-term growth and made bold plans to contemporise traditional Ayurvedic products.

Earlier this month, Dabur India had announced that it had incorporated Herbodynamic India as a wholly-owned subsidiary. In a board meeting held in January, the multinational consumer goods company had approved the incorporation of a wholly-owned subsidiary in India to engage in the business of manufacturing, sale, and export of consumer care products.

(Edited by : Ankit Gohel)

First Published:Mar 17, 2021 2:57 PM IST