Macquarie has downgraded its target price for Dabur to Rs 560 from Rs 600, maintaining a neutral rating. This decision follows observations of weaker-than-expected demand, primarily driven by monsoon-related disruptions and efforts to rationalize channel inventory.
The brokerage has revised down its EPS estimates for FY26 and FY27 by 5% each, and its FY25 EPS estimate by 8%, reflecting these challenges. While Dabur expects a sales recovery starting in October, Macquarie remains cautious about the slower-than-anticipated demand momentum.
Despite these setbacks, Dabur continues to be a significant player in the FMCG sector, and its long-term prospects hinge on how effectively it navigates these near-term obstacles. Macquarie will closely monitor Dabur’s performance as it implements strategies to overcome these temporary challenges.
