Brokerage views on Dabur India remain divided after its Q1FY26 results, with Nomura maintaining a buy, HSBC holding a neutral stance, and Morgan Stanley staying underweight. While there is consensus on the near-term challenges, expectations diverge on the medium-term growth and margin outlook.
HSBC has maintained a hold rating on Dabur with a target price of ₹500 per share. The brokerage noted that volumes declined 1% year-on-year, while price growth stood at 3%. Competitive pressures affected realisations and margins, despite 7% YoY growth in overall sales. HSBC flagged muted growth across categories and said the company is targeting high single-digit (HSD) growth in FY26.
Nomura, in contrast, has reiterated its buy call with a target of ₹575 per share. It stated that the Q1FY26 performance was largely in line with the company’s pre-quarter update, and it expects double-digit sales growth in Q2FY26. Nomura forecasts high-single-digit growth for FY26 overall, supported by year-on-year margin improvement.
Morgan Stanley, however, remains cautious, retaining its underweight view with a target price of ₹396 per share. The brokerage observed that rural growth was 390 basis points ahead of urban, though urban markets are showing sequential improvement. For the quarter, India volume declined 1% with 3% price growth, in line with other brokerages’ observations. The company has guided for HSD value growth and margin expansion for FY26.
The diverging views reflect different levels of confidence in Dabur’s ability to revive volumes and defend margins amid pricing pressures and rural-urban demand dynamics.
Disclaimer: This article is based on stock research reports from HSBC, Nomura, and Morgan Stanley. The views and target prices mentioned are theirs. This does not constitute a recommendation to buy or sell any stock. Please consult a registered financial advisor before making any investment decisions.
