Morningstar Equity Analyst Report | Report as of 03 Feb 2015 | Page 1 of 9

Dabur India Ltd 500096 (XBOM)

Morningstar Rating

Last Price

Fair Value Estimate

Price/Fair Value

Dividend Yield %

Market Cap (Bil)

Industry

Stewardship

261.40 INR

175.00 INR

1.49

0.86

459.15

Household & Personal Products

Standard

02 Feb 2015

02 Feb 2015

02 Feb 2015

02 Feb 2015

Morningstar Pillars

Analyst

Quantitative

Economic Moat
Valuation
Uncertainty
Financial Health

Narrow
Q
Medium

Narrow
Overvalued
Medium
Strong

Source: Morningstar Equity Research

500096

Undervalued

Fairly Valued

Price/Quant Fair Value

Price/Earnings
Forward P/E
Price/Cash Flow
Price/Free Cash Flow
Dividend Yield %

Suruchi Jain, 02 January 2015

Investment Thesis

Quantitative Valuation
*/%

Daburs Margin Expansion Story Plays Out as Anticipated; Price Continues

to Factor in Rosier Picture

Overvalued

Current

5-Yr Avg

1.21
46.1
38.2
40.8
50.8
0.86

34.4

34.1
64.0
1.06

Sector Country

0.89
21.2
17.7
12.4
21.4
1.88

0.75
18.2
18.4
8.1
13.1
1.10

Source: Morningstar

Bulls Say
ODespite the increasingly competitive consumer
product landscape in India, Dabur should be able
to maintain relatively stable operating margins,
given its unique positioning as "the" herbal
brand.
OA well-diversified product mix makes Dabur's
revenue and profits generally stable across
business cycles and seasons.
OWe like the fact that Dabur has retained the
management of acquired companies while
venturing into new markets, as management with
experience in these markets will guide the firm's
local strategy better.
Bears Say
OAs Dabur expands its product portfolio in hair
care and oral care, it will face an increased
competitive threat from global heavyweights such
as Procter & Gamble, Unilever, and Colgate.
OWith 32% of its sales and a portion of its costs
derived internationally, Dabur's results could be
pressured by unfavorable foreign exchange rate
movements.
OElevated commodity, packaging, and distribution
costs, along with increased marketing and
promotional spending, could limit profit expansion
at Dabur.

We believe Dabur's herbal brand is uniquely positioned,

lending the firm a narrow economic moat. With more than
15 different herbal products, a well-diversified product
portfolio gives Dabur revenue stability across business
cycles and seasons. The company has made large strides
in establishing a distribution network in the more remote
regions of India (reaching 38,250 villages in March 2014,
from 33,000 villages in June 2013 and 15,000 in March
2011). On the urban distribution front as well, the company
is including more chemists under its coverage and plans
to expand this network to 75,000 chemists from the 53,000
it had in March 2014. However, Dabur isn't alone in its
distribution expansion efforts. Other consumer firms like
Hindustan Unilever are undertaking similar projects to
widen the reach of their products. To stay relevant in an
increasingly competitive market, Dabur will have to
continue playing up its herbal strength in new products it
launches.
One of the areas of focus for management has been the
food category, which includes juices under the Real brand
and culinary products under the Hommade brand. This
segment has been growing at a compound annual rate of
25% over the past four years and is one of the
fastest-growing categories in Dabur's product portfolio.
Per the Assocham industry report, Dabur already has more
than 50% share in the fruit juice market and is
experimenting with other noncarbonated beverages,
where heavyweights such as Coca-Cola and PepsiCo have
less dominant market share. Dabur recently launched
yogurt-based beverages and packaged coconut water, and
we will be closely tracking consumer acceptance on this
front. Overall, we believe these products will strengthen
Dabur's differentiated positioning as a provider of herbal
and natural products, and its expanded distribution
footprint will allow it to continue expanding its top line
at a healthy pace.
Suruchi Jain, 03 February 2015

Analyst Note
Daburs third-quarter 2015 earnings growth bubbled to
16%, as lower input costs and an improved product mix
helped it approach our full-year, 17% estimate. Sales
grew by 9%, slower than our 15% forecast for 2015, as

domestic sales grew 12% (volume of 7.4%) and

international revenue was up just 4%, accounting for
currency movement. On a constant currency basis,
international advanced 16%.
Gross margin surged by over 100 basis points as lower
crude oil prices begin to factor into raw material purchases
(25% of which are based on oil-derivatives). We expect
margin to expand further in the coming quarter, as our
historic analysis indicates that companies with high
reliance on oil-based substances as raw inputs experience
margin expansion in the one-to-two quarters subsequent
to a crude oil price decline. This quarters domestic growth
came more from the high-margin healthcare portfolio
rather than its lower-margin food and beverage segment,
further lifting margins. Management indicated that the
company may launch new variants of baby oils in the
coming quarters to compete more effectively with the
market leader, Johnson and Johnson. We believe this is
a reasonable area to allocate capital to, given that it's a
growing market with a handful of competing players.
Furthermore, with Daburs existing brands in the space, it
has both the platform and the experience to introduce a
suitable offering. Its portfolio of strong brands reaffirms
our narrow moat rating.
Earnings before interest and tax, or EBIT, margins during
the quarter moved to 15.4% exceeding our fiscal 2015
estimate of 15.2%. However, nine-month margins were
15.0%, keeping us confident that the full-year number
should hit our estimated 15.2%. Despite expanding
margin, we continue to view the stock as
overvalued--trading at 38 times our 2016 earnings
estimate. We believe the current price is factoring in
unsustainable growth (above our average five-year
earnings growth estimate of 16.6%) and rosier margins.

Economic Moat
Suruchi Jain 02 January 2015

We give Dabur a narrow economic moat rating because

of its strong brands in niche products, where it competes
with few branded competitors, and its differentiated
positioning as a natural and herbal product provider in
more mainstream, competitive product categories. Proof
of its economic moat is observable in the market share
gains it has realized in the toothpaste market, to 13.4%
share in 2014 from 9.8% in 2006, despite competition from

2015 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. The information contained
herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without
written permission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. See last page for important disclosures.

Morningstar Equity Analyst Report |Page 2 of 9

Dabur India Ltd 500096 (XBOM)

Morningstar Rating

Last Price

Fair Value Estimate

Price/Fair Value

Dividend Yield %

Market Cap (Bil)

Industry

Stewardship

261.40 INR

175.00 INR

1.49

0.86

459.15

Household & Personal Products

Standard

02 Feb 2015

02 Feb 2015

02 Feb 2015

02 Feb 2015

Close Competitors

Currency (Mil)

Market Cap

TTM Sales

Operating Margin

TTM/PE

Hindustan Unilever Ltd 500696

INR

1,964,269

292,333

17.84

49.75

Godrej Consumer Products Ltd 532424

INR

365,517

78,624

13.89

45.05

Marico Ltd 531642

INR

232,477

53,270

14.36

44.05

firms like Colgate and Unilever. This, along with its returns
on invested capital, which averaged around 30% over the
past five years, are well above our 10.3% cost of capital
estimate, supports our take that Dabur maintains a narrow
economic moat.

Valuation
Suruchi Jain 02 January 2015

We are increasing our fair value estimate for Dabur by a

modest 4% to INR 175 per share, as we adjust for the
time value of money while maintaining our forecast. Our
current valuation implies a price/adjusted earnings ratio
of 33 times, enterprise value/ adjusted EBITDA of 23
times, and a free cash flow yield of 2.3%.
Our long-term outlook on the firm remains the same, with
a forecasted annual growth in earnings of 16.8%. We
assume this earnings growth comes from a combination
of strong double digit, top-line growth of 14.6%, on
average, over the next five years, and a 130-basis-point
improvement in operating margins between fiscal 2014
and fiscal 2019. While the performance during the first
half of fiscal 2014 has lagged our forecast both in terms
of growth and margins, we remain hopeful that the winter
season (months which tend to be more favorable for the
companys high-margin health supplement portfolio) will
help pick up its margin profile. Furthermore, the firm spent
over 14% of its revenue on advertising in 2014, which is
higher than the trailing five-year average of 13.2%. We
believe the firm will reap the benefits of these brand
investments in the coming years, and forecast 13.5%
spends for the next five years.
Our segment-wise sales growth outlook also remains
unchanged, with the average five-year growth in
consumer care division (84% of total sales) assumed at
14.6%, and margins at 20.7%. We assume foods (13% of
sales) will deliver 16.4% average sales growth over the
coming five years with margins at 15.0%. We also grow
the firms retail arm (still under 2% of sales) at 15.0%
annually and assume that it generates its first profit in
fiscal 2016.

Risk
Suruchi Jain 02 January 2015

Dabur's well-diversified product mix provides a steady

revenue stream that is less susceptible to seasonal
swings. However, Dabur is increasingly expanding into
segments where it will compete head-on with large
foreign firms. While its herbal niche should allow it to
differentiate its offering, it would be difficult for Dabur to
match larger firms in terms of distribution reach and
advertising spending. Also, with its international
expansion and overseas raw material sourcing, Dabur is
becoming increasingly susceptible to country risk and
global currency movements. However, given its low
revenue cyclicality, low financial leverage, and medium
operating leverage, Dabur has low systematic risk. We
therefore assign the company a medium uncertainty
rating.

Management
Suruchi Jain 15 July 2014

Sunil Duggal took over as chief executive officer in June

2002. He joined Dabur in 1995 as general manager (sales
and marketing) of the oral- and hair-care division. The
division grew well under his leadership and he was soon
promoted to vice president of the division. In July 2000,
Duggal was appointed director of sales and marketing for
Dabur, and in 2002 he became CEO.
While the Burman family owns 68.6% of Dabur's
outstanding equity, manager compensation is in line with
competition. A large proportion of Duggal's total
compensation is in the form of stock options, thereby
helping to align management interests with those of
shareholders.
We believe Dabur's management is disciplined in its
capital-allocation decisions. The company has historically
paid out approximately 35%-40% of its earnings as
dividends to investors and has a stated commitment to
continue maintaining its dividend payout ratio at those
levels. The company generates approximately 8% of free
cash flow to sales each year and has been increasing
earnings at 20% annually over the past eight years;
however, it still does not repurchase shares, preferring to
hold cash as dry powder to fund future acquisitions. As of
March 31, the company had INR 5 billion of excess cash
on its balance sheet and another INR 6.5 billion as
investment in securities. We like that Dabur maintains a
healthy balance sheet with a low leverage ratio; however,

2015 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. The information contained
herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without
written permission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. See last page for important disclosures.

Morningstar Equity Analyst Report |Page 3 of 9

Dabur India Ltd 500096 (XBOM)

Morningstar Rating

Last Price

Fair Value Estimate

Price/Fair Value

Dividend Yield %

Market Cap (Bil)

Industry

Stewardship

261.40 INR

175.00 INR

1.49

0.86

459.15

Household & Personal Products

Standard

02 Feb 2015

02 Feb 2015

02 Feb 2015

02 Feb 2015

we would prefer management to use excess cash to

generate better shareholder returns or return this cash to
shareholders in the form of higher dividend payouts. The
company regularly invests approximately 4% of its sales
in capital expenditures, mostly funded by internal
accruals. Overall, we believe the firm's stewardship of
shareholder capital is standard.

2015 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. The information contained
herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without
written permission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. See last page for important disclosures.

Morningstar Equity Analyst Report |Page 4 of 9

Dabur India Ltd 500096 (XBOM)

Morningstar Rating

Last Price

Fair Value Estimate

Price/Fair Value

Dividend Yield %

Market Cap (Bil)

Industry

Stewardship

261.40 INR

175.00 INR

1.49

0.86

459.15

Household & Personal Products

Standard

02 Feb 2015

02 Feb 2015

02 Feb 2015

02 Feb 2015

with Daburs Stock Price; Outlook Still Positive

Analyst Notes Archive

Daburs Margin Expansion Story Plays Out as
Anticipated; Price Continues to Factor in Rosier
Picture
Suruchi Jain 03 February 2015

Daburs third-quarter 2015 earnings growth bubbled to

16%, as lower input costs and an improved product mix
helped it approach our full-year, 17% estimate. Sales
grew by 9%, slower than our 15% forecast for 2015, as
domestic sales grew 12% (volume of 7.4%) and
international revenue was up just 4%, accounting for
currency movement. On a constant currency basis,
international advanced 16%.
Gross margin surged by over 100 basis points as lower
crude oil prices begin to factor into raw material purchases
(25% of which are based on oil-derivatives). We expect
margin to expand further in the coming quarter, as our
historic analysis indicates that companies with high
reliance on oil-based substances as raw inputs experience
margin expansion in the one-to-two quarters subsequent
to a crude oil price decline. This quarters domestic growth
came more from the high-margin healthcare portfolio
rather than its lower-margin food and beverage segment,
further lifting margins. Management indicated that the
company may launch new variants of baby oils in the
coming quarters to compete more effectively with the
market leader, Johnson and Johnson. We believe this is
a reasonable area to allocate capital to, given that it's a
growing market with a handful of competing players.
Furthermore, with Daburs existing brands in the space, it
has both the platform and the experience to introduce a
suitable offering. Its portfolio of strong brands reaffirms
our narrow moat rating.
Earnings before interest and tax, or EBIT, margins during
the quarter moved to 15.4% exceeding our fiscal 2015
estimate of 15.2%. However, nine-month margins were
15.0%, keeping us confident that the full-year number
should hit our estimated 15.2%. Despite expanding
margin, we continue to view the stock as
overvalued--trading at 38 times our 2016 earnings
estimate. We believe the current price is factoring in
unsustainable growth (above our average five-year
earnings growth estimate of 16.6%) and rosier margins.
Modest Fair Value Upgrade Still Unable to Catch Up

Suruchi Jain 02 January 2015

We increase our fair value estimate for Dabur by 4% to

INR 175 per share, as we adjust for the time value of money
while maintaining our forecast. Our fair value estimate
implies a price/adjusted earnings ratio of 33 times, and
enterprise value/adjusted EBITDA of 23 times. We believe
the stock is overvalued at current trading levels, and
recommend investors await an adequate margin of safety
prior to investing in this otherwise low-cyclicality stock.
Our bull and bear scenarios represent the medium
uncertainty, or unsystematic risk, that the firm carries
primarily as a result of steady cash flows garnered by a
well-diversified product portfolio, which generates
reasonably strong revenue throughout the year.
Our long-term outlook on the firm remains favorable. As
before, as we forecast annual earnings growth of 16.8%
over our five-year explicit forecast. We assume this
earnings growth comes from a combination of strong,
double-digit, top-line growth, and margin improvements
through growth of the firms high margin health
supplement portfolio. Overall, we still believe the firms
capital allocation is standard as it continues to spend
wisely behind building its brands, which lend it its narrow
economic moat status.
Daburs Q2 2015 Earnings Growth Inches Closer to
Our Estimates; Shares Priced at Steep Premium
Suruchi Jain 04 November 2014

Daburs second-quarter 2015 earnings were up 15%,

inching closer to our full-year forecast of 17% as profit
growth improved in comparison to the prior year. Revenue
grew by 10%, slower than our 15% expectation for 2015
primarily due to slower growth of 7% in its consumer care
division (comprising 83% of sales for the quarter) versus
our 15% estimate. However, volume growth of 8.7% in its
India business (which comprised 66% of sales this quarter)
is ahead of other Indian consumer firms and provides
evidence that Daburs presence across over 15 product
categories shields it from major economic cycles at a
consolidated level.
Given low revenue cyclicality, combined with low financial
leverage and medium operating leverage, we believe
Dabur has low systematic risk. We assign a medium
uncertainty rating to its fair value estimate. We make no
change to our forecasts or fair value estimate of INR 168
per share, with the shares trading at a significant premium

2015 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. The information contained
herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without
written permission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. See last page for important disclosures.

Morningstar Equity Analyst Report |Page 5 of 9

Dabur India Ltd 500096 (XBOM)

Morningstar Rating

Last Price

Fair Value Estimate

Price/Fair Value

Dividend Yield %

Market Cap (Bil)

Industry

Stewardship

261.40 INR

175.00 INR

1.49

0.86

459.15

Household & Personal Products

Standard

02 Feb 2015

02 Feb 2015

02 Feb 2015

02 Feb 2015

to this level (and nearing the 1-star range), as consensus

estimates factor in faster margin expansion than we
believe is likely.
Earnings before interest and tax, or EBIT, margins during
the quarter were lower compared to the large base in the
same quarter last year when lower input costs caused
gross margin expansion in the international portfolio.
However, for the first-half 2015, the margins improved on
the previous comparable period with cost deflation
underway in the Indian economy, thereby reducing Daburs
raw material costs. EBIT margins for the first six months
of 2015 were 14.8% and we see the costs continuing to
improve through the rest of the year.
Overall, we continue to believe the firm has significant
competitive advantages through its niche herbal brands
across several home care, personal care and health
categories, and maintain that the company has a narrow
economic moat.

2015 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. The information contained
herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without
written permission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. See last page for important disclosures.

Page 6 of 9

Morningstar Equity Analyst Report |Page 7 of 9

Morningstar Equity & Credit Research Methodology

Fundamental Analysis
At Morningstar, we believe buying shares of superior
businesses at a discount and allowing them to compound over time is the surest way to create wealth in
the stock market. The long-term fundamentals of businesses, such as cash flow, competition, economic cycles, and stewardship, are our primary focus. Occasionally, this approach causes our recommendations to
appear out of step with the market, but willingness to
be contrarian is an important source of outperformance and a benefit of Morningstars independence.
Our analysts conduct primary research to inform our
views on each firms moat, fair value and uncertainty.

Fundamental Economic
Fair Value
Moat Rating Estimate
Analysis

Uncertainty
Assessment

QQQQQ
QQQQ
QQQ
QQ
Q
Star
Rating

Economic Moat
The economic moat concept is a cornerstone of Morningstars investment philosophy and is used to distinguish high-quality companies with sustainable competitive advantages. An economic moat is a structural
feature that allows a firm to sustain excess returns
over a long period of time. Without a moat, a companys profits are more susceptible to competition. Companies with narrow moats are likely to achieve normalized excess returns beyond 10 years while wide-moat
companies are likely to sustain excess returns beyond
20 years. The longer a firm generates economic profits,
the higher its intrinsic value. We believe lower-quality
no-moat companies will see their returns gravitate to-

ward the firms cost of capital more quickly than companies with moats will. We have identified five sources of
economic moats: intangible assets, switching costs,
network effect, cost advantage, and efficient scale.

Fair Value Estimate

Our analyst-driven fair value estimate is based primarily on Morningstars proprietary three-stage discounted
cash flow model. We also use a variety of supplementary fundamental methods to triangulate a companys
worth, such as sum-of-the-parts, multiples, and yields,
among others. Were looking well beyond next quarter
to determine the cash-generating ability of a companys
assets because we believe the market price of a security will migrate toward the firms intrinsic value over
time. Economic moats are not only an important sorting
mechanism for quality in our framework, but the designation also directly contributes to our estimate of a
companys intrinsic value through sustained excess returns on invested capital.

Uncertainty Rating
The Morningstar Uncertainty Rating demonstrates our
assessment of a firms cash flow predictability, or valuation risk. From this rating, we determine appropriate
margins of safety: The higher the uncertainty, the wider
the margin of safety around our fair value estimate before our recommendations are triggered. Our uncertainty ratings are low, medium, high, very high, and extreme. With each uncertainty rating is a corresponding
set of price/fair value ratios that drive our recommendations: Lower price/fair value ratios (<1.0) lead to positive recommendations, while higher price/fair value

Economic Moat
C O M PE T I T I V E F O R C E S

WIDE

Moat Sources:

Intangible
Assets

NARROW

NONE

Switching
Costs

COMPANY PROFITABILITY

Network
Effect

Cost
Advantage

2015 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. The information contained
herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without
written permission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. See last page for important disclosures.

Efficient
Scale

Morningstar Equity Analyst Report |Page 8 of 9

Morningstar Equity & Credit Research Methodology

ratios (>1.0) lead to negative recommendations. In very
rare cases, the fair value estimate for a firm is so unpredictable that a margin of safety cannot be properly
estimated. For these firms, we use a rating of extreme.
Very high and extreme uncertainty companies tend to
have higher risk and volatility.

Quantitative Economic Moat: The quantitative moat

rating is analogous to Morningstars analyst-driven
economic moat rating in that both are meant to describe the strength of a firms competitive position.
Financial Health: Financial health is based on Morningstars proprietary Distance to Default calculation.

Credit Rating
The Morningstar Corporate Credit Rating measures the
ability of a firm to satisfy its debt and debtlike obligations. The higher the rating, the less likely we think the
company is to default on these obligations.

Quantitatively Driven Valuations

To complement our analysts work, we produce Quantitative Ratings for a much larger universe of companies.
These ratings are generated by statistical models that
are meant to divine the relationships between Morningstars analyst-driven ratings and key financial data
points. Consequently, our quantitative ratings are directly analogous to our analyst-driven ratings.
Quantitative Fair Value Estimate (QFVE): The QFVE is
analogous to Morningstars fair value estimate for
stocks. It represents the per-share value of the equity
of a company. The QFVE is displayed in the same currency as the companys last close price.
Valuation: The valuation is based on the ratio of a companys quantitative fair value estimate to its last close price.
Quantitative Uncertainty: This rating describes our level of uncertainty about the accuracy of our quantitative
fair value estimate. In this way it is analogous to Morningstars fair value uncertainty ratings.

Understanding Differences Between Analyst

and Quantitative Valuations
If our analyst-driven ratings did not sometimes differ
from our quantitative ratings, there would be little value in producing both. Differences occur because our
quantitative ratings are essentially a highly sophisticated analysis of the analyst-driven ratings of comparable companies. If a company is unique and has few
comparable companies, the quantitative model will
have more trouble assigning correct ratings, while an
analyst will have an easier time recognizing the true
characteristics of the company. On the other hand, the
quantitative models incorporate new data efficiently
and consistently. Empirically, we find quantitative ratings and analyst-driven ratings to be equally powerful
predictors of future performance. When the analystdriven rating and the quantitative rating agree, we find
the ratings to be much more predictive than when they
differ. In this way, they provide an excellent second
opinion for each other. When the ratings differ, it may
be wise to follow the analysts rating for a truly unique
company with its own special situation, and follow the
quantitative rating when a company has several reasonable comparable companies and relevant information is flowing at a rapid pace.

Uncertainty Rating
Price/Fair Value
2.00
Q

1.75

175%

1.50
1.25
1.00
0.75

155%
125%
95%

QQ

135%

80%

125%

115%

110%

105%

QQQ

90%

85%

80%

70%

QQQQ

60%

0.50

50%
QQQQQ

0.25
Low
Uncertainty Rating

Medium

High

Very High

2015 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. The information contained
herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without
written permission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. See last page for important disclosures.

Morningstar Equity Analyst Report |Page 9 of 9

Dabur India Ltd 500096 (XBOM)

Morningstar Rating

Last Price

Fair Value Estimate

Price/Fair Value

Dividend Yield %

Market Cap (Bil)

Industry

Stewardship

261.40 INR

175.00 INR

1.49

0.86

459.15

Household & Personal Products

Standard

02 Feb 2015

02 Feb 2015

02 Feb 2015

02 Feb 2015

2015 Morningstar. All Rights Reserved. Unless stated

otherwise, this report was prepared by the person(s)
noted in their capacity as Equity Analysts employed by
Morningstar, Inc., including its global affiliates. It has
not been made available to the issuer prior to
publication.
The Morningstar Rating for stocks identifies stocks
trading at a discount or premium to their intrinsic value.
Five-star stocks sell for the biggest risk-adjusted
discount whereas one-star stocks trade at premiums to
their intrinsic value. Based on a fundamentally focused
methodology and a robust, standardized set of
procedures and core valuation tools used by
Morningstar's Equity Analysts, four key components
drive the Morningstar Rating: 1. Assessment of the
firms economic moat, 2. Estimate of the stocks fair
value, 3. Uncertainty around that fair value estimate
and 4. Current market price. Further information on
Morningstar's methodology is available from
http://global.morningstar.com/equitydisclosures.
This Research Report is current as of the date on the
report until it is replaced, updated or withdrawn. This
report may be withdrawn or changed at any time as
other information becomes available to us. This report
will be updated if events affecting the report materially
change.

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-Equity Analysts do not influence Morningstar's
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nor allow employees from the investment management
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