Dabur India Share Price is giving strong bullish signal till Rs 628, keep an eye after 10.13 tomorrow
Dabur India Limited’s shares experienced a notable decline, closing at ₹618.50 on the National Stock Exchange (NSE). This drop of ₹6.70, or 1.07%, follows a disappointing quarterly update that revealed a mid-single-digit revenue decline for the July-September period. Analysts are closely monitoring the situation as they provide insights into the stock’s potential performance in the coming days.
Main Points
Dabur’s latest earnings report indicated that the company is facing significant challenges. The decline in revenue is attributed to several factors, including a correction in distribution inventory and adverse weather conditions that affected consumer behaviour. Heavy rains and floods have particularly impacted the out-of-home consumption and beverage segments, leading to expectations of a mid to high-teens decline in operating margins for the quarter.
The company’s management had anticipated a growth rate improvement; however, the actual results fell short of expectations. Analysts from various institutions have reacted differently to these developments:
- Morgan Stanley has maintained an Equal-Weight rating with a target price of ₹772, suggesting some optimism despite the recent downturn.
- Investec has adopted a more cautious stance, retaining a Hold rating with a target price of ₹368, citing concerns over revenue performance.
- Nuvama has issued a Neutral rating with a target price of ₹760, indicating that while there are challenges, there may also be opportunities for recovery in future quarters.
The market’s reaction to Dabur’s earnings update has been swift. The share price has seen fluctuations over recent weeks, with analysts noting that it has declined approximately 4% over the past month. Additionally, the stock’s performance over three months shows an increase of around 6%, but this is overshadowed by the recent negative trends.
As investors look ahead, several key levels will be critical for Dabur’s share price:
- Support Level: The immediate support level is seen around ₹600. If the stock falls below this threshold, further declines could follow.
- Resistance Level: A resistance level is identified at ₹650. A move above this level could indicate a potential recovery.
Analysts suggest that if Dabur can stabilize its operations and improve its sales outlook, there may be opportunities for upward movement in its share price. However, continued monitoring of external factors such as weather conditions and consumer behaviour will be essential.
Looking ahead to Q3 FY25, there is cautious optimism among some analysts. They believe that channel inventory adjustments and seasonal demand could provide a boost to Dabur’s performance. The company’s international business segment is expected to show double-digit growth in constant currency terms, which may help offset domestic challenges.
