Dabur India share price falls 4% after Q1; brokerage trims target
Dabur India reported a 15 percent year-on-year increase in its consolidated net profit to ₹591 crore
 "Dabur India share price falls 4% after Q1; brokerage trims target")
Dabur India's share price dropped over 4 per cent on Thursday, a day after the company reported its Q1FY27 results, delivering in-line performance for the April–June quarter (Q1FY27). The FMCG major's earnings were partially impacted by unseasonal rainfall, analysts noted.
Dabur India's counter at 10:38 AM was trading 3.11 per cent lower at ₹420 per share on NSE. In comparison, Nifty 50 was down 0.03 per cent at 24,242.40. In intraday trade, the stock declined 4.15 per cent to touch the day's low at ₹415 per share.
Dabur India Q1 results highlights:
- The company reported a 15 percent year-on-year increase in its consolidated net profit to ₹591 crore in the June quarter of FY27 compared to ₹514 crore profit a year ago.
- Revenue from operations jumped 10.5 percent to ₹3,764 crore in Q1FY27, compared to ₹3,405 crore in the year-ago period.
- The company's home and personal care business posted a 12.3 percent growth, while the F&B business grew by 7.2 percent, and the healthcare vertical reported a 5.5 percent growth.
Brokerages’ view on Dabur India post Q1 Results
Motilal Oswal Financial Services
The brokerage noted that Dabur's Q1FY27 consolidated revenue grew 11 per cent Y-o-Y, below the estimated 13 per cent, while India business revenue increased 9.5 per cent Y-o-Y. India volume growth came in at 5 per cent below the estimated 8 per cent, partially impacted by unseasonal rainfall (beverage portfolio). "Rural demand continued to outpace urban markets. Management reiterated its confidence in delivering double-digit growth across business verticals during FY27, supported by a slightly higher mix of pricing."
The brokerage added that resilient rural demand, coupled with signs of improving urban demand, bodes well for Dabur's growth outlook.
However, the pace of demand recovery, commodity inflation and the progress of the monsoon (including any El Nino-related risks) remain key monitorables for FY27. "We reiterate our Neutral rating on the stock with a target price of ₹475," MOFSL said.
JM Financial
Dabur’s Q1FY27 results were largely "in line with our estimates," the brokerage said. India FMCG sales increased by 9.5 per cent Y-o-Y (like in Q4) with volume growing by 5 per cent (below estimate of 6 per cent). HPC continues to be the key driver with sales growth of 12.3 per cent, it added.
On profitability, JM Financial noted that while input costs remain inflationary, management targets to drive Ebitda growth ahead of topline through price hikes and cost-saving initiatives.
The brokerage maintained its 'Add' call with a reduced target price of ₹490 versus ₹505 earlier. ========================================================== Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.