Dabur India hits fresh record high; m-cap crosses Rs 1-trillion mark

In the past one month, the stock rallied 8 per cent, against 4 per cent decline in the S&P BSE Sensex

Dabur India, the personal products company, joined the elite club of companies with Rs 1-trillion market capitalization (market-cap) on the BSE, after its share price rose 1.6 per cent to a fresh high of Rs 569.20 in intra-day trade on Thursday in an otherwise weak market. The stock surpassed its previous high of Rs 566, touched on April 9, 2021.

With the market-cap of Rs 1.00 trillion, at 12:05 pm, Dabur India stood at number 38th position in overall market-cap ranking, the BSE data shows. In comparison, the S&P BSE Sensex was down 0.59 per cent at 48,259 points. In the past one month, Dabur India's stock rallied 8 per cent, against 4 per cent declined in the benchmark index.

Dabur is one of the world's largest Ayurvedic and Natural Health Care Company. Dabur India's FMCG portfolio today includes eight distinct Power Brands: Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara and Dabur Lal Tail in the Healthcare space; Dabur Amla and Dabur Red Paste in the Personal care category; and Real in the Foods category.

Dabur India's fast moving consumer goods (FMCG) Business led the growth with a 19.5 per cent surge, with an underlying FMCG volume growth of 18.1 per cent during the third quarter of 2020-21 (Q3FY21).

While announcing the December quarter results on January 29, the company’s management said Dabur India continued to move forward on the growth track, riding on sustained efforts in driving demand for its ayurvedic healthcare and personal care product.

Dabur has shown agility in the overall execution of its strategy over the last few quarters, which has helped it in delivering ahead-of-the-market growth. The company is also expected to continue to gain market share across its domestic core portfolio through its focused power brands strategy, innovation across portfolio, aggressive above-the-line spends (ATL) and improvement in its distribution reach.

Dabur also has a higher rural mix in its domestic portfolio compared to its peers and will be a beneficiary of further pick-up in growth in the hinterlands. On the margin front, Dabur is witnessing input prices firming. Consequently, the company will implement price increases in a calibrated manner across its portfolio. This along with reduction of consumer promotions, cost savings/optimization, focused advertising and better margins from the international business will further aid in managing operating margin, analysts at Nirmal Bang Equities said in Q3FY21 results update.