Synopsis: Here's an intro. into the recent performance of dabur's stock, which has seen a persistent decline, hitting a new 52-week low for the third consecutive session. The share price dropped to Rs 489, marking a 1.26% decrease from the previous close, with the market capitalization shrinking to Rs 89,115 crore.
The stock price of Dabur India dipped to Rs 489, marking a 1.26% decrease from the previous close of Rs 495.25. It opened slightly higher at Rs 495.75 in today's early trading.
Dabur India's shares declined to a new 52-week low for the third consecutive session on Tuesday. The share price dropped to Rs 489, down 1.26% from the previous close of Rs 495.25. At the start of trading today, the stock opened slightly higher at Rs 495.75. The FMCG firm's market capitalization decreased to Rs 89,115 crore.
Over the past two sessions, the stock has ended lower. Dabur's stock is currently trading in the oversold zone, indicated by its Relative Strength Index (RSI) falling to 29.5. An RSI below 30 suggests overselling, while above 70 indicates overbuying.
Additionally, Dabur's stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past year, it has seen a 5% decline, and since the beginning of this year, it has fallen by 10%. The firm's market capitalization now stands at Rs 88,788 crore, with a turnover of Rs 1.62 crore and 0.33 lakh shares changing hands.
Nuvama Institutional Equities predicts the stock to reach Rs 680 and maintains a BUY rating with a target price of Rs 680. They anticipate double-digit year-on-year growth in the international business. However, they note that for the stock to be revalued, Dabur must consistently perform at the top level in the sector.
Nuvama expects the operating profitability in Q4 to be below expectations, with consolidated revenue and EBITDA growing at 5% and 9% year-on-year, respectively. They predict a 2.5% year-on-year decline in PAT. Domestic business is expected to grow by 5% in value terms and 3.5% in volume terms, while international business is forecasted to grow by 11% year-on-year in constant currency terms.
Emkay Global Financial Services foresees the stock hitting Rs 660. They project a 5% increase in the topline, with domestic revenue growing at 5% and international revenue in double digits in constant currency. However, they expect currency devaluation in Turkey and Egypt to impact translated growth to the mid-single digits. EBITDA and PAT growth are estimated to be 8%.
Despite Dabur India's recent struggles, marked by consecutive declines in stock value and hitting a new 52-week low, analysts remain cautiously optimistic about its future. While challenges persist, particularly regarding Q4 operating profitability, there are opportunities for growth, especially in the international market. Investors should carefully monitor the company's performance and heed the insights provided by market analysts.
