Dabur India shares dropped more than 4% in morning trade after Swiss brokerage UBS downgraded the FMCG major to ‘hold’ from ‘buy’ earlier.
UBS highlighted important concerns about Dabur India’s high valuations, as well as a potential risk to beverage sales growth. The expanding popularity of cola drinks, along with growing rivalry in the coconut oil market, poses a downside risk to its sales.
For the next five years, however, the brokerage maintained its positive outlook on Dabur. Despite reducing its rating on the counter, UBS increased its target price on the FMCG giant to Rs 700 per share, representing a 7% increase from the previous session’s close.
As of 10:26 am, Dabur India shares were trading 4.70% lower at ₹625.00 on the NSE.
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Dabur India