Dabur India’s shares fell 4.5% to an intra-day low of Rs 501.10. The company expects its consolidated revenue to grow in the low single digits in Q3 FY25 due to subdued healthcare and beverage demand.
Dabur India in its quarterly business update said that it believes the profit to remain flat, on an annual basis. Also, it expects to post a muted operating profit or earnings before income and tax (EBIT) growth in Q3.
“While general trade was still under pressure, alternative channels like modern trade, e-commerce, and quick commerce continued to post strong growth,” said the company in an exchange filing.
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The brokerage house, InCred Equities in a research report, said that it expects consolidated sales to grow 2.3% on year with a flat EBITDA growth, leading to an EBITDA margin contraction of 53 bps year-over-year to 20% in Q3 FY25. The brokerage firm has an ‘Add’ rating on the stock, with a target price of Rs 610, an upside of over 16% from the closing price of January 03.
Another brokerage firm, Motilal Oswal, said it continues to like Dabur (despite near-term soft earnings) with other FMCG firms as it does not see much downside risk and expects a better operating print in the coming quarters. It has a ‘Buy’ rating on the stock and a target price of Rs 675.
Dabur India’s performance in Q2
The company reported a 17.5% year-on-year fall in its consolidated net profit for Q2 FY25 to Rs 425 crore. The company had a net profit of Rs 515.05 crore in the same quarter a year ago. The FMCG major’s consolidated revenue from operations stood at Rs 3,028.59 crores during Q2 FY25 from Rs 3,203.84 crore in Q2 FY24, a fall of 5.5% on year.
Dabur India Vs Nifty 50
The stock of Dabur India has fallen around 0.08% in the past five trading sessions. The share price of Dabur India has decreased by 3.5% in the previous one month and 19% in the last six months.
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