IBEF: April 16, 2021
On Thursday, Dabur India Ltd.'s shares reached a new all-time high, positioning it in the exclusive group of companies with a market capitalization of Rs. 1 trillion (US$ 13.33 billion).
Intraday, the stock reached an all-time high of Rs. 579.90 (US$ 7.73). On the BSE, the stock closed at Rs. 572.85 (US$ 7.64), up 2.23%. The market capitalization of Dabur was Rs. 1.01 trillion (US$ 13.47 billion).
On May 7, 2021, the company may announce its March quarter earnings. It is expected to report good earnings. Analysts say that growth trends in health supplements, over-the-counter and ethical products, oral care, and juices will be important to watch.
Dabur saw a significant increase in retail offtake thanks to good momentum in foods, beverages, and oral care.
JP Morgan, in line with the past three-year average multiple, has extended its target price timeframe (PT) to March 2022, with a new PT of Rs. 600 (US$ 8), based on a 48x one-year forward P/E multiple.
Antique Stock Broking stated in a note to its investors, “Honey demand has moderated even further as a result of increased competition. The new mango drink, in particular, has been gaining popularity. Dabur is anticipated to increase by 31% in the fourth quarter of FY21.”
As per Antique Stock Broking, "During the month, there were no new product releases. In March, Dabur controlled inventory levels very well. Overall distributor inventory levels decreased from 7-10 days in February 2021 to about 6-8 days. The supply chain was standard, with no stock outs in any category.”
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.