Dabur’s Q4 Result
As of the fourth quarter for the fiscal year 2024, Dabur India’s performance has positively impacted market sentiment, which is evident in its sustained gains in market share and a strong rural growth versus urban markets. This rural revival is enhancing prospects for the firm, with an expected high single-digit volume increase forecasted for FY2024–25. This expansion is likely to be underpinned by a gentle price hike of 2-3 percent propelled mainly through strong sales in rural areas as stated by Nuvama.
On May 3, Dabur’s stock price reflected this positive sentiment by jumping up to Rs 537 or +2.3% early morning.
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Analysts from Nuvama and Jefferies have retained their ‘buy’ rating on Dabur shares while Morgan Stanley has recommended an ‘Overweight’ position. Jefferies however has set a bullish target price of Rs 660 for Dabur on expectations that revenue growth will touch high single digit to double digits in FY25.
Dabur India CEO Mohit Malhotra said that this year saw the company expand coverage into an additional 22K villages taking total presence upto 122K villages thereby indicating its commitment towards deeper penetration into rural markets also adding region specific packaging options were introduced keeping affordability factor intact among products meant exclusively targeting such consumers.
But there are still worries around the stock too. Nuvama has reduced its target slightly from Rs 680 to Rs 640 due to cautious optimism while Morgan Stanley having lower top-line growth momentum concerns sets TP at Rs 604 per share.
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During Q4FY24, The company reported a consolidated net profit of INR341.22cr, up by +16.5% YoY and Total revenue was INR2814.64 crore, higher by +5.11% YoY.
Following its quarterly results announcement today Dabur’s stock ended trading +4% at Rs 528.60. However, in CY24 so far shares are -5%, which has underperformed the Nifty50 that is up +4%.
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