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Kotak Upgrades Dabur India Shares From Reduce to Add
Kotak Institutional Equities changed its view of Dabur India shares from “Reduce” to “Add.”
This means the brokerage now thinks investors may consider adding the shares to their holdings.
The change came after the stock price fell significantly over about four months.
Kotak believes the lower price makes the shares more reasonably valued.
It also expects Dabur’s sales and earnings to grow by 9–10% in financial year 2026–27.
A softer comparison base and better execution by new India CEO Herjit Bhalla may help.
However, Dabur’s health supplement beverage business remains a weakness.
Kotak said changing the company’s product portfolio could take time.
The brokerage therefore lowered its fair-value estimate to ₹430 from ₹465.
Kotak Institutional Equities upgraded Dabur India to “Add” from “Reduce” after a sharp share-price correction.
The brokerage set a fair value of ₹430 per share, down from its earlier ₹465 estimate.
Kotak expects revenue and earnings-per-share growth of 9–10% in financial year 2026–27.
Improved execution under new India CEO Herjit Bhalla and a softer comparison base are expected to support growth.
The brokerage warned that weaknesses in health supplement beverages and the need for portfolio transformation could limit medium-term growth.
- Who
- Dabur India and Kotak Institutional Equities, with Herjit Bhalla identified as Dabur’s new India CEO.
- What
- Kotak Institutional Equities upgraded Dabur India’s stock rating from “Reduce” to “Add” and assigned a ₹430 fair value.
- Where
- Dabur India shares traded on the Bombay Stock Exchange (BSE).
- When
- The stock closed on Wednesday, September 16; Kotak’s outlook covers financial year 2026–27.
- Why
- The upgrade was driven mainly by the stock’s correction and reasonable valuation, although Kotak remains cautious about portfolio weaknesses and the pace of transformation.
Reasons to Add
Reasons for Caution
Valuation and near-term performance
Reasons to Add
Kotak said the nearly 20–25% correction over four months has made Dabur’s valuation reasonable and could support near-term performance.
Reasons for Caution
The stock had still declined 23.4% in 2026 so far and around 28.44% over one year, according to the article.
Operating outlook
Reasons to Add
Kotak expects operating performance to improve, with 9–10% revenue and earnings-per-share growth in financial year 2026–27, helped by a softer base and better execution under Herjit Bhalla.
Reasons for Caution
The brokerage said structural weakness in the portfolio, particularly health supplement beverages, could weigh on medium-term growth.
Portfolio transformation
Reasons to Add
A successful portfolio transformation could support a sustainable turnaround and future growth.
Reasons for Caution
Kotak described portfolio transformation-led sustainable growth as a difficult task that could take time, prompting it to trim estimates and lower fair value.
Key facts
- New rating
- “Add,” upgraded from “Reduce” by Kotak Institutional Equities
- Fair value
- ₹430 per share, compared with an earlier ₹465 estimate
- Expected growth
- 9–10% revenue and earnings-per-share growth in financial year 2026–27
- Closing price
- ₹384 per share on Wednesday, September 16
- Market capitalization
- ₹67,942.55 crore
- Intraday range
- ₹383 to ₹389.55 per share
- Reported return on equity
- 21.26%
Quotes
Kotak Institutional Equities
Brokerage providing the Dabur India stock rating and valuation assessment
“Our upgrade to ADD from REDUCE is primarily driven by reasonable valuations. While we expect Dabur’s execution to improve under its new India CEO, portfolio transformation-led sustainable turnaround is a tall ask and could take time.”
livemint.com
Sources
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