Dabur Shares Plummet 8% Following Q2 Revenue Decline – Investment Implications
Dabur shares fell by 8% following an unfavorable Q2 update indicating a mid-single-digit revenue decline. The stock dropped to a low of Rs 571.25 on the BSE, ending at Rs 618.50 on the NSE. Analysts have shared varied views with Morgan Stanley suggesting an Equal-Weight rating and a target price of Rs 772, while Investec has a Hold rating with a lower target of Rs 368 due to declining volumes. The company's forecast warns of profitability impacts in upcoming quarters, raising concerns among investors.
Analysis of Q2 Revenue Decline
The FMCG sector has faced ongoing challenges, and Dabur's recent report indicates a worrying trend. Analysts have pointed out the impact of heavy rains and slower consumer spending as significant factors behind the decline. Despite potential double-digit growth in the international segment, the current state of domestic sales raises red flags.
Expert Opinions
- Morgan Stanley: Equal-weight with target of Rs 772. Indicates revenue decline due to distribution inventory corrections.
- Investec: Holds rating; anticipates 5% consolidated revenue drop, citing weak quarterly performance.
- Nuvama: Neutral stance; suggests expected revenue/EBITDA declines of 5%/15% YoY.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.