Suryaa Business Desk: Dabur India has announced its financial results for the second quarter of the current fiscal year. The company’s net profit rose by approximately 12 percent year-on-year to 505 crore rupees, while total revenue increased by nearly 12 percent to 3,563 crore rupees. The company recorded domestic volume growth of over 5 percent, with the food and beverage and personal care segments showing double-digit growth. The management has declared an interim dividend of 3.50 rupees per share.
Despite these results, international brokerage firms have expressed varying opinions on the stock's future, citing potential institutional leadership changes and pressure on profit margins. Jefferies has maintained a "buy" rating but reduced its target price from 610 rupees to 535 rupees. The firm noted improvements in rural purchasing power and premium product sales as positive factors, though it highlighted a need for clarity regarding future management strategies following the departure of the current CEO. Jefferies also cited operational challenges in the healthcare segment and increased production costs as reasons for adjusting its outlook.
Citi Research has maintained a "sell" rating with a target price of 380 rupees, warning of uncertainty regarding the sustainability of current growth rates despite the ongoing revival of core brands. The firm analyzed that the leadership transition process could impact business expansion in the short term.
Goldman Sachs has issued a "neutral" rating with a target price of 485 rupees, while HSBC has assigned a "hold" rating with a target price of 426 rupees. These firms emphasized the need to monitor competition in the honey business and rising operating costs, despite the rapid expansion of premium brands.
Analysts suggest that while rising demand in the rural market is a positive factor, the selection of new leadership and the burden of raw material costs may keep the stock within a limited range in the short term. Market experts advise investors to exercise caution until institutional strategies stabilize, noting that the company’s immediate task is to maintain profit margins amidst intense market competition.