Dabur India shares tumble 3% after UBS downgrades to 'hold', cites lofty valuations

Over the past year, Dabur India shares have traded recorded a gain of 15 percent.

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26 Aug, 2025 12:21

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Dabur India shares slipped into the red in the morning session after Swiss brokerage UBS downgraded the FMCG major to 'hold' from 'buy' earlier.

UBS listed key concerns regarding Dabur India's lofty valuations, along with a possible risk to beverage sales growth. The rising growth of cola drinks, along with increasing competition in the coconut oil space poses as a downside risk to its sales.

At 9.40 am, Dabur India shares were quoting Rs 634.3 on the NSE, lower by 3.3 percent.

However, the brokerage remained optimistic on Dabur for the next five years. Despite downgrading its rating on the counter, UBS raised its target price on the FMCG giant to Rs 700 per share, which implies an upside of seven percent from the previous session's close.

Hindustan Coca-Cola Beverages (HCCB) received two bids from Dabur’s Burman family and Jubilant Group promoters for a 40 percent stake in global beverage maker Coca Cola’s Indian bottling arm.

The bids value the stake between Rs 10,800 crore and Rs 12,000 crore, ET said citing sources, adding that the transaction could put the valuation of the subsidiary between Rs 27,000 crore and Rs 30,000 crore.

However, according to media updates, the Burmans have withdrawn from the race to acquire a stake in Hindustan Coca-Cola Beverages.

Over the past year, Dabur India shares have traded recorded a gain of 15 percent. In comparison, the headline Nifty 50 index surged 31 percent during the same time period.