FMCG major Dabur India's stock seems reasonably valued post correction

Dabur is expanding its premium portfolio and Total Addressable Market (TAM). The company estimates its existing portfolio, contributes less than 5 per cent of TAM

Analysts’ interactions with Mohit Malhotra, chief executive officer (CEO) of Dabur India (Dabur), give a clear picture of the demand trends in the fast-moving consumer goods (FMCG) space and the company’s strategy.

 

A recent stock correction has brought valuations to reasonable levels. Analysts seemed positive on the stock. 

 

The demand environment is unchanged compared to Q2FY25. Rural demand is slowly recovering, but urban demand is subdued.

 

Dabur made inventory corrections at the end of Q2FY25 to improve distributor return on investment (RoI), which had a significant impact on primary sales performance in Q2 (domestic revenue down 8 per cent).

 

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