Shares of Dabur India were trading 0.5 percent higher at open on the NSE on January 5, a day after the company reported that consolidated revenue is expected to register mid to high single digit growth in Q3FY24. At 9:20 am, the stock was trading at Rs 569.2.
Follow our market blog for live updates
In a regulatory filing on January 4, Dabur India said that the quarter ended December 2023 witnessed sequential improvement in demand trends although rural growth was still lagging urban growth. According to the company, the consolidated revenue is expected to register mid to high single digit growth during Q3 FY24.
Also read: Dabur India Q3 update: Revenue to rise in 'mid-to-high single digit' percentage
Food and beverages (F&B) segment in the India business is also expected to grow in high-single digits and home & personal care (HPC) to record growth in mid-single digit, while the international business is expected to register double-digit growth in constant currency terms, the company said. The international business growth is led by good momentum in the Middle East and North Africa (MENA) region. Gross margins during the quarter are also likely to expand and operating profit is expected to grow slightly ahead of the revenue and post an improvement in YoY.
Analyst view and financials
Foreign brokerage firm Morgan Stanley has given an overweight call to Dabur India with a target price of Rs 604. According to the report, the weak Q3 will continue to lag in the rural sector with sequential demand trends to continue during Q3 with growth mostly volume led. The management is expecting consumption in both urban and rural markets to recover, the report added.
In Q2FY24, Dabur India reported a consolidated net profit of Rs 507.04 crore for Q2FY24, higher by 3.29 percent year-on-year. Revenue for the same period also grew to Rs 3,203.84 crore, up 7.27 percent from the year-ago quarter.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!