Morgan Stanley has reiterated its ‘Underweight’ rating on Dabur India, keeping the target price unchanged at ₹396, after the FMCG major reported its lowest EBITDA margin in ten years, citing urban slowdown and input cost pressures.
In Q4FY25, Dabur’s India revenue fell 4%, led by a sharp decline in urban demand and weak consumer sentiment. The Home and Personal Care (HPC) segment posted a 3% decline, while the healthcare business contracted 5%. Additionally, the beverages portfolio remained sluggish, with a 9% drop in revenue.
One of Dabur’s recent growth drivers, Badshah Masala, also saw its growth taper to 6% in Q4, compared to 16% in the previous quarter, partly due to a slowdown in institutional demand and delays in Canteen Stores Department (CSD) orders.
MS noted that the company’s pricing actions and cost management have not yet translated into margin improvement, and the continued softness in discretionary consumption could delay recovery further. As a result, the brokerage remains cautious on Dabur’s near-term earnings trajectory.
Disclaimer: The above views are those of the brokerage and not the publication. Investors should consult a certified financial advisor before making investment decisions.
