Street View: Weak earnings growth for Dabur India to persist

Dabur India

07/07/2025 05:25

** Dabur India DABU.NS expects Q1 operating profit growth to lag consol rev growth, which is expected in low single-digit pct range

** Post-close on Friday, consumer goods maker noted improving urban demand spurring volume uptick

** Shares up 3% to 513 rupees on Monday

UNDERPERFORMANCE CONTINUES

** Nomura ("buy", TP 550 rupees) says underperformance vs peers continues; believes both sales, vols down marginally

** "Despite having significant exposure to rural, and rural continuing to perform well for the industry, we note Dabur is not benefiting from the trend" - Nomura

** Morgan Stanley ("underweight", TP 396 rupees) says weak earnings growth seen continuing

** Adds, co's top-line growth largely in line, had estimated 1% growth

** Macquarie ("neutral", TP 480 rupees) says continued weakness in beverages "make us concerned about near-term growth rates"

 (Reporting by Hritam Mukherjee in Bengaluru)

 ((Hritam.Mukherjee@thomsonreuters.com;))