Dabur India gains after clarification

Dabur India rose 1.73% to Rs 217 at 12:33 IST on BSE after the company issued clarification with regard to media news reports.

The clarification was issued after market hours yesterday, 28 October 2014.

Meanwhile, the S&P BSE Sensex was up 141.33 points or 0.53% at 27,022.15.

On BSE, so far 1.06 lakh shares were traded in the counter as against average daily volume of 1.72 lakh shares in the past one quarter.

The stock was intensely volatile. The stock rose as much as 2.48% at the day's high of Rs 218.60 so far during the day. The stock lost as much as 0.6% at the day's low of Rs 212 so far during the day. The stock had hit a record high of Rs 235.40 on 27 August 2014. The stock had hit a 52-week low of Rs 154 on 5 February 2014.

The stock had underperformed the market over the past one month till 28 October 2014, sliding 4.63% compared with Sensex's 0.96% rise. The scrip had, however, outperformed the market in past one quarter, advancing 7.7% as against Sensex's 3.42% rise.

The large-cap company has equity capital of Rs 175.64 crore. Face value per share is Re 1.

Dabur India issued a clarification with regard to news item titled "Three black money account holders". The company said that since the media reports relates to one of the Burman family members (not the company and its directors), necessary clarification was issued to the media by the Burman family only and not by Dabur India.

The clarification from Burman family said that the said account was opened when Pradip Burman was an NRI, and was legally allowed to open this account. The statement further said that all the laws and the complete details regarding the account have been voluntarily, and as per law, filed with the Income Tax Department, and appropriate taxes paid, wherever applicable. Therefore it is unfortunate that every person having a foreign bank account is being painted with the same brush, it added.

The clarification further said that Pradip Burman is not a member on the board of directors of Dabur India. Burman is one of the promoters of the company, it added.

The aforesaid news items published in the various news media have no material impact on Dabur India, the clarification stated.

Dabur India announces its Q2 September 2014 results on 3 November 2014. On a consolidated basis, Dabur India's net profit rose 13.3% to Rs 210.81 crore on 13.2% growth in net sales to Rs 1863.90 crore in Q1 June 2014 over Q1 June 2013.

Dabur India is one of India's leading FMCG companies. Dabur operates in key consumer product categories like hair care, oral care, health care, skin care, home care and foods.

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