During Wednesday's intraday trade on the BSE, shares of Dabur dropped 5% to Rs 622 following a downgrading from 'Buy' to 'Neutral' by international brokerage UBS. UBS increased Dabur's target price from Rs 650 to Rs 700 in spite of the downgrading.
The brokerage expressed worries about the stock's high price and possible threats to the expansion of beverage sales. Dabur's sales may potentially be impacted by growing competition from brands of coconut oil and cola beverages.
UBS is still upbeat about the company's chances for sales growth over the following five years, though. The stock has increased by 12% so far this year, and it has gained 20% over the last six months.
Compared to the same period last year, Dabur's consolidated net profit increased by 8% to Rs 500.12 crore in Q1 FY25 from Rs 463.88 crore. Consolidated net profit after taxes from ongoing activities increased by 18% to Rs 1,981 from Rs 1,675 crore recorded in the same period last year.
The reported quarter's operating revenue of Rs 3,349.11 crore represented a 7% increase over the corresponding quarter's revenue of Rs 3,130.47 crore in the preceding fiscal year. The consolidated profit after tax (PAT) increased 43% sequentially from Rs 349.53 crore in Q4FY24. In Q4FY24, revenue increased by 19% on a quarter-over-quarter basis to Rs 2,814.64 crore.
The stock's relative strength index (RSI) is 53.6 from a technical perspective. An RSI of less than 30 is regarded as oversold, while one above 70 denotes overbought conditions, according to Trendlyne. Furthermore, the MACD is at 7.7, above the signal line but below the center line.
While the stock is trading below its 5-day, 10-day, 20-day, 30-day, and 50-day SMAs, it is trading above its 100-day, 150-day, and 200-day SMAs.
