Dabur India Ltd Share Price – NSE  /  BSE

FMCG, Mid Cap

The company said that rural growth picked up fuelled by price roll backs in staples which led to the gap between rural and urban narrowing. With a positive outlook for the rabi crop harvest and monsoon forecast are expected to further boost consumption in the coming months.

The company’s consolidated revenue is expected to register mid-single digit growth during Q4 FY24. The inorganic revenue growth which was to the extent of around 2.3% till YTD Dec 2023 on account of Badshah acquisition is now factored in the base.

In India business, home and personal care (HPC) segment is expected to grow in high-single digits. Healthcare and food and beverage (F&B) segments are expected to register low single digit growth. F&B had a high base of last year and healthcare portfolio was impacted due to delayed winter. Badshah Masala continued to perform well and is expected to post strong volume led growth in high teens. The company continued to gain market share across our categories driven by strong execution in market.

On a brighter note, the company’s International Business is expected to register double-digit growth in constant currency terms, driven by good momentum in the Middle East and North Africa (MENA) region, particularly Egypt and Turkey. However, currency depreciation in Turkey and Egypt will affect the translated revenue in INR terms will show growth in mid single digits.

The company’s gross margins to continue expanding due to a decrease in input costs and cost-saving initiatives. In line with their strategy to invest in its brand, the firm will increase their advertising and promotion (A&P) spends. The operating profit is expected to grow slightly ahead of the revenue and post an improvement in Y-o-Y operating margins.

Looking ahead, the company expects an improvement in consumption due to positive macroeconomic indicators. The company's focus on investing in their brands, expanding distribution, manufacturing capabilities and organization will position them well to capture the opportunities in the market place.

Dabur India is among the top four FMCG companies in India. It has business interests in healthcare, personal care and food products. The company offers products in over 100 countries across the globe, covering health and personal care segments across the herbal and natural space.

The FMCG major's consolidated net profit rose 8.04% to Rs 514.22 crore on 6.96% increase in revenue from operations to Rs 3,255.06 crore in Q3 FY24 over Q3 FY23.

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Dabur India Ltd rose for a fifth straight session today. The stock is quoting at Rs 530.75, up 0.3% on the day as on 12:44 IST on the NSE. The benchmark NIFTY is down around 0.15% on the day, quoting at 22427.95. The Sensex is at 73851.67, down 0.22%. Dabur India Ltd has dropped around 1.22% in last one month.

Meanwhile, Nifty FMCG index of which Dabur India Ltd is a constituent, has dropped around 0.55% in last one month and is currently quoting at 53889.15, up 0.07% on the day. The volume in the stock stood at 4.77 lakh shares today, compared to the daily average of 15.52 lakh shares in last one month.

The benchmark April futures contract for the stock is quoting at Rs 535, up 0.36% on the day. Dabur India Ltd is down 3.08% in last one year as compared to a 28.91% gain in NIFTY and a 17.9% gain in the Nifty FMCG index.

The PE of the stock is 62.58 based on TTM earnings ending December 23.

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Dabur India will hold a meeting of the Board of Directors of the Company on 2 May 2024.

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The credit rating agency has reaffirmed Dabur’s short term rating at ‘[ICRA] A1+’.

ICRA stated that the reaffirmation of ratings factors in Dabur India's (Dabur) continued healthy operating and financial performance, as reflected in its healthy volume growth (across product categories), robust cash flows, strong balance sheet and superior liquidity position.

The ratings continue to derive strength from Dabur’s position as one of the leading companies in the domestic fast-moving consumer goods (FMCG) segment, its well-established brands in the ayurvedic/ herbal category, healthy market share for many of its products, strong distribution network and a diversified product portfolio.

The ratings remain supported by Dabur’s strong balance sheet with negative net debt position and strong credit metrics.

Dabur is continuously seeking synergistic acquisitions in both domestic and international markets in an endeavour to increase its market share and brand portfolio. In this regard, ICRA notes that the company had acquired nearly 51% stake in Badshah Masala w.e.f. 2 January 2023, a branded player in the spices and condiments category with major presence in Gujarat, Maharashtra and Telangana, at a consideration of approximately Rs 588 crore.

This acquisition was funded by internal accruals and existing liquid investments and is expected to help expand the company’s foods business over the medium term. ICRA expects the management to continue to adopt a disciplined approach while evaluating further inorganic growth opportunities.

Dabur continues to remain exposed to intense competition in the FMCG sector and risk of growth slowdown due to a challenging macro-economic environment. The domestic FMCG business continues to witness competition with multiple established players, including some large multinational players as well as domestic companies.

Dabur India is among the top four FMCG companies in India. It has business interests in healthcare, personal care and food products. The company offers products in over 100 countries across the globe, covering health and personal care segments across the herbal and natural space.

The FMCG major's consolidated net profit rose 8.04% to Rs 514.22 crore on 6.96% increase in revenue from operations to Rs 3,255.06 crore in Q3 FY24 over Q3 FY23.

The scrip shed 0.30% to end at Rs 522.35 on the BSE on Friday.

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