Dabur India Shares Slide 2% After Q2 Results: Should You Buy, Sell, or Hold?
Dabur India Ltd, a leading FMCG player, saw its shares decline by nearly 2% post its Q2 FY24 earnings report. While revenue growth met expectations, margins faced pressure due to rising input costs and weak rural demand. Is this dip a buying opportunity or a warning sign? Here’s a detailed analysis.
Dabur Q2 FY24 Results: Key Highlights
1. Revenue Growth
- Consolidated revenue rose 7.3% YoY to ₹3,204 crore, driven by price hikes and urban demand.
- Domestic business grew 6%, while international sales jumped 12%.
2. Profitability Under Pressure
- Net profit declined 2.8% YoY to ₹515 crore due to higher ad spends and inflation.
- Gross margins fell 60 bps to 47.5%, while EBITDA margins dropped 130 bps to 20.1%.
3. Rural Demand Remains Weak
- Management flagged sluggish rural recovery but expects improvement in upcoming quarters.
Analyst Recommendations: Buy, Sell, or Hold?
- Morgan Stanley (Overweight, Target ₹650) – Sees long-term growth potential.
- Kotak Institutional (Reduce, Target ₹540) – Cautious due to margin concerns.
- Nuvama (Hold, Target ₹580) – Advises waiting for margin recovery.
Should You Buy, Sell, or Hold Dabur Shares?
Long-Term Investors: Buy on Dips
- Strong brand portfolio (Real, Vatika, Hajmola) and global expansion support growth.
Short-Term Traders: Wait and Watch
- Near-term headwinds may keep the stock range-bound.
Existing Shareholders: Hold with Caution
- Dividend stability and potential recovery make holding a viable option.
Final Verdict: Is Dabur a Good Bet Now?
While Dabur faces margin pressures, its fundamentals remain strong. Long-term investors can accumulate at lower levels, while short-term traders should wait for clearer signals.
Disclaimer: This is not investment advice. Consult a financial expert before trading.
What’s your view on Dabur’s stock? Comment below!
