15 Apr , 2021 By : Kanchan Joshi
Mumbai: Dabur India Ltd touched Rs1 trillion in market capitalisation after its shares hit a fresh record high on Thursday.
The stock touched an all-time high of Rs569.20, and is currently up 1% at Rs566 on the BSE. Dabur's market cap stood at Rs1.01 trillion.
The company may declare its March quarter earnings on 7 May. It is expected to post strong earnings on a weak base of last year. Growth in health supplements, OTC & ethicals, oral care and juices would be watched, analyst say.
The company delivered a strong growth in retail offtake on the back of strong traction in foods, beverages and oral care.
Analyst say that given higher rural salience, any potential uptick in rural consumption could benefit Dabur disproportionately. Overseas operations, Middle East in particular, could be challenged in the short term.
Brokerage firm JP Morgan extended its target price time frame to March 2022 and set a new target of Rs600.
"Chyawanprash witnessed a sequential decline in demand which is generally a normal trend while honey demand further moderated due to competitive intensity. Notably, the new mango drink has been receiving good traction. Overall, Dabur is expected to deliver 31% growth during the 4QFY21", said Antique Stock Broking in a note to its investors.
There were no new product launches from the company during the month. "We understand that Dabur managed inventory levels very efficiently in March. Overall inventory levels with distributors came down from 7-10 days in Feb'21 to about 6-8 days. The supply chain was normal with no stock out witnessed in any of the categories," the broking firm added.
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