Multi-year high margins lend comfort to Dabur; demand and sales to rise

Even as advertising spend was benign and aided margins, Dabur gained market share in 70-75 per cent of its domestic portfolio

The Dabur stock recorded a 52-week high at Rs 382.3 in Wednesday's trade, after the company posted its highest operating profit margin of 23.9 per cent, up 206 basis points (bps) year-on-year (y-o-y), in the March quarter. This was led by cost management and an improved product mix.

Operating expenses (excluding finance costs and depreciation) as a proportion of sales fell to 76 per cent, among its lowest; it was 78 per cent in the year-ago quarter. A fall in cost of raw material consumption propelled the gross margin, which expanded by 167 bps to 50.7 per cent. The management foresees