Moneycontrol Bureau
Shares of Dabur India jumped 2 percent intraday on Thursday. JP Morgan is overweight on the stock with a revised target of Rs 325 per share.
The brokerage expects revenue CAGR of 12.5 percent over FY16-19, supported by a step-up in product innovation continued focus on distribution enhancement, expectations of improvement in rural growth and pricing growth of 2-3 percent.
It believes Dabur’s portfolio will benefit from its herbal and ayurvedic heritage and leverage on growing consumer preference for natural products.
This week itself, Nomura had downgraded Dabur India to neutral from buy but increased target price to Rs 325 per share on expensive valuations. It said all positives seem to be priced in the stock. Nomura said it was still bullish on Dabur expecting that it will be a key beneficiary of the pick-up in consumption, given its strategic positioning, diversified product portfolio and distribution reach. Consumer preference for natural and ayurvedic products bodes well for the company, it added.
At 11:56 hrs Dabur India was quoting at Rs 308.65, up Rs 4.00, or 1.31 percent on the BSE.
Posted by Nasrin Sultana Follow @NasrinzStory
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