Browse By

Dabur stock price rises on market share gain, Badshah acquisition

Stock broker trading online watching charts and data analyses on multiple computer screens. Male stock broker trading online watching charts and data analyses on multiple computer screens. STOCK MARKET  stock pictures, royalty-free photos & images

Share price of FMCG company Dabur surged 1.5 percent higher as the company reported market share gain across 95 percent of its portfolio in Q2FY23 and also announced an acquisition to expand its food business.

At 10 am, the stock was quoting R s 541 on the National Stock Exchange, up by 1.6 percent. In 2022 so far, the stock has declined 6.7 percent while the Nifty FMCG index has advanced 16.52 perce

The homegrown FMCG major on Wednesday reported a 2.85 percent decline in its consolidated net profit to Rs 490.86 crore for the second quarter ended September 30. However, its revenue from operations rose 6 percent to Rs 2,986.49 crore against R s 2,817.58 crore in the corresponding quarter of the previous fiscal.

The company also gained market share across 95 percent of its product portfolio. “We reported a 410 bps market share gain in the Juices & Nectars category, while our share of the Digestives category improved 270 bps. Our Chyawanprash market share increased 120 bps and our share of the Shampoo category improved 40 bps. Dabur share of the Hair Oils market increased 20 bps,” CEO Mohit Malhotra said.

n other news, the firm Announced the acquistion of a for a cash consideration of Rs 587.5 crore. The acquisition is  expected to be completed before March 31, 2023, it said in its press release.

Falling stock markets, stocks for coronavirus , Financial data on a monitor which including of Market Analyze. Bar graphs, Diagrams, financial figures. The fall of coronavirus exchanges . forex trading graph and candlestick chart suitable for financial investment concept. Economy trends background for business idea and all art work design. Abstract finance background. STOCK MARKET  stock pictures, royalty-free photos & images

Plus, the company has announced capex plan of Rs 325 crore for its Indore project with proposed capacity addition for Red Toothpaste, one liter juice and portion packs.

According to global brokerage Goldman Sachs, acquisition of the spices brand will significantly boost the company’s kitchen condiments ambitions. It has a Buy call on the stock with a target price of R s 680 apiece.

Morgan Stanley, on the other hand, has an Equal-weight call with a target price of R s 537 per share. “Q2 earnings largely in-line. Market share gains and acquisition to expand foods business are big positives,” it said.

Through the Badshah acquisition, Dabur has entered into the R s 25,000 crore spices and seasoning market in India, domestic brokerage Motilal Oswal noted.

However, a word of caution was sounded by analysts. Key risks for the company is a sharp slowdown in rural demand growth in India and increased competitive intensity in healthcare products, they said.

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.​​

Leave a Reply

Your email address will not be published. Required fields are marked *