Dabur India Share Tanks for Second Day on Weak Q4 Results

Dabur India's fourth-quarter profit edged up on urban demand.

On May 5, Dabur India quoted 1.5% lower in the early morning for the second day after posting a weak number for the March quarter of FY22-23.

The homegrown FMCG major logged a 0.5% YoY decline in Q4 net profit at Rs 292.7 crore, and domestic volume rose 1%.

At 10:30 am, the stock was trading at Rs 518.4 on the NSE, down 2.2% from the previous close. The stock has lost 7% in 2023 so far.

Dabur’s EBITDA fell 9.6% YoY to Rs 410 crore. The operating margin fell to 15.3% from 18% last year.

CLSA showed an “outperform” rating after announcing Q4 numbers with a target price of Rs 600 per share. While the EBITDA margin contracted due to one-offs, i.e. Badshah Masala acquisition.

Dabur India is India’s second player in the oral-care segment, with a 15.8% market share, it said in a release to the media.

In FY23, the hair oils business zoomed its highest-ever share at 17% on a 130 bps, the FMCG major added.

Goldman Sachs gave a “buy” rating with a target price of Rs 600 per share. Morgan Stanley believes Dabur India “remains a leading player on rural recovery”.  It gave an “overweight” rating with a target of Rs 606 per share.

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