Ajanta Pharma's stock has seen a fresh breakout from the trading range of roughly 1350-1480 levels
According to experts, discretionary businesses like food services and jewellery continue to have a greater presence in urban areas versus rural areas, where consumption slowdown has been pronounced.
Terming it as "incremental budget", Dabur India CEO Mohit Malhotra said the government continues to focus on farmers' income and is offering significant sops at the lower end of the spectrum
The management, however, said the near-term outlook for demand growth remains challenging with most key categories reporting a steady decline in value and volume growth.
Topline up 7% led by 5.6% rise in volumes on faster rural sales, while pre-tax profit up over 9%
Focus on power brands and rural expansion augur well for the stock, trading at 43 times its FY21 estimated earnings
The firm's PBT declined from Rs 473.7 crore last year to Rs 461.8 crore.
The net profit was impacted by one-time impairment in value of investments to the tune of Rs 40 crore
Consolidated net profit grew 7 per cent at Rs 403 crore as against Rs 377 crore in the year-ago quarter.
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Consolidated revenue grew 9.3 per cent for the quarter to Rs 2,273 crore, up from Rs 2,081 crore a year ago
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Though revenue rose by 4.7 per cent, net profit declined during the January-March period
Dabur's total expense was Rs 1,729.59 crore as against Rs 1,603.56 crore a year ago, up 7.85%
Long-term prospects, however, remain intact despite slowing demand
Total income in the December quarter stood at Rs 2,274.46 crore
We are now ramping up investment in advertising and promotion, through both above-the-line and below-the-line activities
Dabur's revenue from food business was at Rs 2.89 billion, up 2.33 per cent as against Rs 2.82 billion in the year-ago period
Dabur's international business, which forms 30% of its sales, grew 10.5%(on constant currency) during the quarter backed by strong growth in markets like Saudi Arabia, Pakistan and Egypt