Dabur India stock price down by more than 3% today

6 Apr 2023 , 12:41 PM

Dabur India’s shares are seeing a decline of more than 3% during afternoon trading session today, following the company’s announcement that it anticipates mid-single-digit revenue growth for Q4 FY23. 

This forecast guidance suggests that there will be no notable improvement compared to the previous quarters, where the company recorded a topline growth of 3.5% in Q3 and 6% in Q2.

Furthermore, the fast-moving consumer goods (FMCG) company has raised its investments in its brands, resulting in strain on the operating margin. 

It is projected that the operating margin for Q4FY23 will be 200-250 basis points lower than the Q4FY22 margin of 18%, where each basis point represents one-hundredth of a percentage point.

In an official filing with the exchange, the company stated that although there has been a slight sequential improvement in the demand trend in both urban and rural markets in India, it is still not sufficient for a complete recovery.

Regarding the company’s segmental performance, the food and beverage (F&B) division is projected to display robust double-digit growth, whereas there has been a deceleration in the personal care categories.

The quarter also signifies the integration of Badshah Masala, which the company is currently in the process of consolidating. According to the company, the integration is progressing as anticipated.

At around 12.36 PM, Dabur India was trading at Rs 529.90, down by 3.31% against the previous close of Rs 548.05 on NSE. The counter touched an intraday high and low of Rs 548.05 and Rs 528.25 respectively.

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