FMCG major Dabur India's healthy run comes riding on growth triggers

Distribution, new product contribution, and portfolio expansion are positive

Notwithstanding multiple headwinds on the rural demand and commodity cost fronts, fast-moving consumer goods major Dabur India met Street estimates for the December (Q3FY22) quarter. Also, its market-share gains across categories, foray into new segments, such as snacks, and distribution expansion are expected to help the company maintain a healthy growth rate.

The stock is up over 4 per cent in the past two trading sessions, the biggest gain across the Nifty FMCG constituents.

The resilient performance in Q3 despite a higher exposure to the slowing rural market is positive. The company outperformed its peers in the rural market with