Brokerages have shared varied opinions on Dabur, reflecting a cautious outlook on its performance. Below is a summary of their ratings, target prices, and expected percentage upside/downside based on the current market price (CMP) of ₹524.00:
| Brokerage | Rating | Target Price (₹) | Expected % Upside/Downside |
|---|---|---|---|
| Morgan Stanley | Equal Weight | 531 | +1.3% |
| Macquarie | Neutral | 560 | +6.9% |
| CLSA | Hold | 582 | +11.1% |
Key Insights from Brokerages
- Morgan Stanley: Retains an ‘Equal Weight’ rating with a target price of ₹531, citing slightly below-estimate Q3 revenue growth and challenges in healthcare and beverages due to delayed winter. Rural growth outperformed urban markets, providing a positive offset.
- Macquarie: Maintains a ‘Neutral’ stance with a target price of ₹560. The brokerage highlights flat healthcare sales and muted beverage performance, which drove weaker sales. EBITDA margins also declined year-on-year due to inflationary pressures.
- CLSA: Rates the stock as ‘Hold’ with a target price of ₹582. It notes low single-digit revenue growth (below consensus of 4%) and flattish operating profit margins, but acknowledges rural growth outpaced urban areas.
Summary
Brokerages hold a cautious view on Dabur, with limited upside potential ranging from +1.3% to +11.1%. Concerns over muted revenue growth, inflationary pressures, and margin contraction remain prominent.
Disclaimer: The above analysis is based on inputs provided and is for informational purposes only. It does not constitute financial advice. Readers are advised to consult their financial advisors before making any investment decisions.
