Dabur India Shares Tumble Over 2% in Early Trade Amid Broader Market Slip

Dabur India witnessed a notable dip in its share price during early trade on May 15, with the stock falling by 2.02 percent to Rs 520.20. This decline was mirrored across the broader market, as both the Sensex and Nifty experienced a downturn, sliding by 0.52 percent and 0.50 percent respectively.

Adding to the concerns, Dabur India's stock hit a fresh 52-week low of Rs 518.50 on the National Stock Exchange (NSE).

The trading session saw a volume of 58,958 shares exchanged, reflecting investor sentiment following recent financial disclosures. The company’s market capitalization stood at Rs 92,693.47 crore at the time of the dip.

This market movement comes on the heels of Dabur India's announcement of its fourth-quarter results for the financial year 2024.

The Fast-Moving Consumer Goods (FMCG) giant reported a consolidated net profit of Rs 377.2 crore, marking a healthy 16.5 percent increase year-on-year. Revenue from operations also saw a positive trajectory, growing by 5.1 percent to Rs 2,814.3 crore.

Operational efficiency was also highlighted, with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rising by 14.1 percent to Rs 552 crore.

This improvement led to a 150 basis points expansion in EBITDA margins, reaching 19.6 percent, indicating better cost management and profitability.

Despite the positive financial performance, brokerage firms offered varied outlooks on Dabur India's stock. Citi maintained a 'sell' rating on the stock, setting a target price of Rs 470.

Their assessment primarily cited weak domestic volume growth as a key concern for the company's future performance. Conversely, Motilal Oswal reiterated a 'buy' rating for Dabur India, with a more optimistic target price of Rs 640. Motilal Oswal's positive stance was underpinned by robust underlying growth observed in key segments and the company's continued efforts in expanding its distribution network, suggesting strong long-term potential.