Dabur India Shares Rise 2% as Q3 Net Profit Increases 7%: Analyst Insights
Dabur India has recently reported a noteworthy performance in its Q3 results, resulting in a 2% surge in its stock price. The company’s consolidated net profit increased by 7% year-over-year, reaching ₹560 crore, compared to ₹522 crore during the same period last year.
Financial Highlights
– Net Profit & Revenue Growth
– Consolidated net profit for Q3 FY26: ₹560 crore (up 7% YoY)
– Revenue from operations: ₹3,559 crore (up 6% YoY from ₹3,355 crore)
– Sequential Performance
– PAT rose 24% from ₹453 crore in Q2 FY26
– Revenue increased 11% from ₹3,191 crore in Q2 FY26
– FMCG Sector Performance
– The FMCG sector registered a growth of 6% across various markets and categories.
Market Share Gains
Dabur’s strategic moves in the FMCG sector have resulted in significant market share gains:
– Hair Oils: Increased by 193 bps, reaching approximately 20% market share.
– Air Fresheners: Increased by 131 bps, now holding 44% market share.
– Juices & Nectars: Gained 195 bps, with a significant expansion of 646 bps in the 100% juices category.
– Skin & Salon Products: Grew by 6.6%.
– Hajmola: The flagship digestive brand saw a growth of 7%.
International Business Performance
Dabur’s international operations achieved an impressive 11.1% growth in Q3, driven by strong performances in:
– Turkey
– MENA regions
– The United States
– Bangladesh
Analyst Perspectives on Dabur India Shares
As for the outlook on Dabur India shares, analysts from Morgan Stanley have maintained their Underweight rating with a target price of ₹400, indicating a potential downside of 21% from current levels.
– Key Points from Analysts:
– Despite the reported growth, Q3 performance was anticipated to be weaker, particularly in the healthcare and beverages sectors.
– There was a noted demand improvement in December, signaling potential recovery.
– Plans for a 2% price hike in Q4 could impact future revenues.
– Analysts recognized seasonality and weather as key risk factors affecting the company’s outlook.
In conclusion, Dabur India’s recent financial performance and market share gains in their FMCG sector have led to a positive movement in their stock price. However, analysts remain cautious about future growth prospects, highlighting potential challenges and the need for strategic adjustments to maintain momentum. Investors should monitor these developments closely to make informed decisions regarding Dabur India shares.