The shares of one of India’s leading FMCG, Ayurvedic and natural health care companies tumbled over 8 percent to create a new 52-week low on Thursday after reporting muted business updates for Q4 FY25.
Stock Movement
With a market capitalization of Rs 82,492.55 crore, Dabur India Ltd fell nearly 8 percent to a fresh 52-week low of Rs 458.25 per share on Thursday as compared to its previous closing price of Rs 495.50 per share. The shares retraced from the day’s low and were trading at Rs 465.45 which is 6 percent lower than the previous close.
Q4 Business Update
In an exchange filing, Dabur India reported that during Q4 FY25, rural markets showed higher growth compared to urban markets. In terms of sales channels, organized trade (Modern trade, E-commerce, and Quick commerce) continued stable growth while General trade continued to struggle, impacting total domestic FMCG sales.
Dabur’s international business did well, with MENA (Middle East & North Africa), Egypt, and Bangladesh to deliver double-digit growth. In India, Dabur’s Foods business comprising ‘Hommade’ and ‘Badshah’ maintained growth momentum and is also likely to report double-digit growth.
But, the FMCG segment is expected to decline in mid-single digits on account of a truncated winter season and weak urban demand. Consequently, overall consolidated revenue for Q4 will likely remain flat. Profitability has been affected by inflation and reduced operating efficiency, with operating profit margin to contract 150-175 basis points YoY.
Future Outlook
Despite these hurdles, Dabur continues to pursue profitable growth by investing in brand building, enhancing go-to-market strategies, and increasing operational efficiency. Further, the incentives provided by the government in the Union Budget could help boost FMCG demand, placing Dabur on the road to a possible revival.
Company Overview
Dabur India Limited is one of India’s leading FMCG, Ayurvedic and natural health care companies with distribution across the world. Dabur India’s FMCG portfolio today includes nine distinct Power Brands. These are separated into three major categories: Healthcare, Personal Care and Foods.
Financials
When looking at the financial statements, the company reported a muted 3 percent growth in revenue from Rs 3,255 crore to Rs 3,355 crore during Q3 FY24-25. This was accompanied by a 2 percent increase in net profits from Rs 506 crore to Rs 516 crore during the same period.
Written by Shwetha Sairam
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