Top Stock To Watch Today: Dabur shares in focus as company releases tepid Q3 business update

Dabur India Limited has drawn investor attention today after releasing a subdued Q3 FY25 business update post-market hours on January 3, 2025. The company highlighted low single-digit revenue growth and flat profit growth year-on-year for the quarter ended December 31, 2024, citing demand challenges in key segments.

Key Highlights from Dabur’s Q3 Business Update:

• Revenue Growth: Consolidated revenue growth is expected to remain in the low single digits, impacted by muted demand in the healthcare and beverage segments.
• Profitability: Net profit growth for the quarter is anticipated to remain flat YoY.
• Segment Performance:
  • Healthcare Segment: Expected to remain flat due to the delayed onset of winter.
  • Beverages: Recorded muted growth.
  • Culinary Business: Strong double-digit growth led by brands like ‘Hommade’ and ‘Badshah.’
  • Home and Personal Care (HPC): Anticipated mid to high single-digit growth.
• Rural Demand: Continued resilience with rural markets growing faster than urban markets.
• Alternate Channels: Modern trade, e-commerce, and quick commerce posted strong growth despite general trade remaining under pressure.
• Inflationary Pressures: Some segments faced inflationary challenges, mitigated through price increases and cost-efficiency measures.
• International Business: Double-digit growth in constant currency terms driven by robust performance in MENA, Egypt, Bangladesh, and the US.

Outlook:

Dabur remains optimistic about a sequential improvement in demand, supported by improving macroeconomic conditions. The company expects the FMCG sector to witness a revival in growth going forward.

Market Performance:

Dabur’s shares gained 2.29% to close at ₹525.05 on January 3, 2025. Investors will closely monitor the stock’s performance in today’s session amid the cautious Q3 update.