The brokerage cited concerns over the stock’s rich valuation and potential risks to beverage sales growth. Rising competition from cola drinks and coconut oil brands could also impact Dabur’s sales.
However, UBS remains optimistic about the company’s sales growth prospects over the next five years.
On a year-to-date basis, the stock has surged 12%, while it has gained 20% in the past six months.
In Q1 FY25, Dabur reported an 8% jump in its consolidated net profit to Rs 500.12 crore as against Rs 463.88 crore reported in the year-ago period. Meanwhile, consolidated net profit after taxes from continuing operations stood at Rs 1,981, up 18% from Rs 1,675 crore reported in the year-ago period.
The revenue from operations for the reported quarter stood at Rs 3,349.11 crore, up 7% over Rs 3,130.47 crore posted in the corresponding quarter of the previous financial year.On a sequential basis, the consolidated profit after tax (PAT) jumped 43% versus Rs 349.53 crore in Q4FY24. The revenue uptick was 19% on a QoQ basis at Rs 2,814.64 crore in Q4FY24.Technically, the stock’s relative strength index (RSI) is at 53.6. According to Trendlyne, an RSI below 30 is considered oversold, while above 70 indicates overbought conditions. Additionally, the MACD is at 7.7, which is above its center line, but below the signal line.
The stock is trading above its 100-day, 150-day, and 200-day simple moving averages (SMAs), but below its 5-day, 10-day, 20-day, 30-day, and 50-day SMAs.
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