Dabur: Lower raw material costs, new product launches to boost growth

Progress of firm's international business will be watched, despite analysts' estimates of 14-15% growth in profit

After 14 per cent average volume growth in the first three quarters of FY19, Dabur is expected to maintain its volume outperformance vis-à-vis peers. 

In addition to volume growth, margin gains on the back of lower raw material costs should help it post strong revenue and net profit growth, going ahead. 

The company, which posted results in line with expectations in the December quarter, is trading at 44 times its FY20 earnings, which is at a 16 per cent discount to larger peer Hindustan Unilever. 

While volume growth has varied from 7-21 per cent over the last six quarters, analysts at J.P. Morgan