Dabur India dips 3% as 1% equity change hands via block deals

Shares of Dabur India dropped 3 per cent to Rs 570.80 on the BSE in Tuesday's intra-day trade after 1 per cent equity of the personal care products' company changed hands on the counter.

At 09:15 am, around 18.2 million equity shares, representing 1.02 per cent of total equity of Dabur India, changed hands on the BSE, exchange data shows. The names of the buyers and sellers could not be ascertained immediately.

According to media reports, Burman family, the promoter of Dabur India, was looking to sell stake worth Rs 800 crore through a block deal on Tuesday.

As of September 30, 2022, the Burman family together held 67.24 per cent stake in Dabur India, shareholding pattern data shows.

In the past one week, Dabur India has underperformed the market by falling 5 per cent, as compared to 1 per cent decline in the S&P BSE Sensex. However, in the past one month, the stock gained 5 per cent as against 0.30 per cent decline in the benchmark index. It hit a 52-week high of Rs 610 on December 7.

Meanwhile, analysts at Prabhudas Lilladher expect sequential gross margin improvement for Dabur India from Q3FY23 given lower inflation & calibrated price hikes. Rural continues to remain impacted by higher product prices and has lagged Urban markets after five quarters.

"Normal monsoons, good harvest, and increase in MSP will drive demand in rural in near/medium term. Long term outlook remains intact given innovation led growth strategy with focus on 8 core brands, increasing share in Foods & Beverages & Hair care category, LUP Innovations allowing DABUR to leverage its distribution, strong rural distribution coverage of over 100,000 villages in H1FY23, entry into Rs 25,000 crore branded spices category with Badshah Masala acquisition and 4-5 per cent incremental sales/year from e-com innovations," the brokerage firm had said in its September quarter result update.