Rural distribution expansion likely to keep Dabur in a sweet spot

Increasing rural reach would help Dabur achieve better growth than its peers despite weak demand, said an analyst

Despite the cautious commentary from the management on the demand front, the stock of Dabur gained about 2 per cent in intra-day trade on Monday, when the broader markets were under pressure, before closing 0.25 per cent higher.
 
While one reason could be that the stock had fallen after the results on Friday along with the markets, a relatively better growth outlook amid Dabur's focus on expanding its rural reach is what seems to have enthused the Street.
 
Nitin Gupta, analyst at SBICAP Securities, said: “Dabur’s efforts to expand its rural reach is on the right track. This