Shares of Dabur India Ltd. fell by 7.32% to ₹573.70 in early trading on the NSE after Macquarie downgraded its target price for the stock to ₹560 from ₹600, maintaining a neutral rating. The brokerage’s decision is driven by weaker-than-expected demand, largely due to disruptions caused by monsoon-related issues and efforts to rationalize channel inventory.
Macquarie has also revised its earnings per share (EPS) estimates for Dabur, cutting its FY25 projection by 8%, and FY26 and FY27 estimates by 5% each, reflecting the ongoing challenges. While Dabur anticipates a sales recovery starting in October, the brokerage remains cautious due to the slower-than-expected demand recovery.
In addition, Dabur’s consolidated Q2 revenue is expected to decline by mid-single digits, with operating margins likely to fall to the mid-to-high teens, further contributing to the stock’s drop. Despite these short-term obstacles, Dabur remains a major player in the FMCG sector, with its long-term growth hinging on effective strategies to overcome these challenges.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Please consult a financial advisor before making any investment decisions.
