Brokerage houses remain bullish on shares of Dabur India Ltd. as the FMCG major continues to gain market share across the portfolio and witnessed recovery in rural demand.
Analysts are of the view that the company's weak fourth-quarter financial earnings were marred by one-offs.
Morgan Stanley recommended an overweight rating on the shares of Dabur with a price target of Rs 606 per share, which is a potential upside of 14 percent from Thursday's close.
The global investment-adviser has an ‘overweight’ rating despite the company missing consensus expectations in the March quarter.
While overall growth has lagged expectations, the company continues to gain market share across its portfolio and remains a strong player in rural recovery, Morgan Stanley said.
In addition, CLSA has maintained an ‘outperform’ rating on shares of Dabur with a price target of Rs 600 apiece.
Explaining the bullish rationale, CLSA said the company continues to gain market share along with some green shoots in rural demand. It added that Dabur's operational performance during the quarter was marred by one-offs.
The healthcare growth segment is expected to rebound and the foods and beverages segment is expected to lead growth for the company. However, CLSA expects spending on advertising and promotions to delay margin recovery.
Goldman Sachs also has a ‘buy’ call on Dabur with a price target of Rs 600 per share.
The consumer goods major on Thursday reported a 0.5 percent drop in its net profit year-on-year to Rs 292.76 crore for the March quarter (Q4FY23), compared to Rs 294.34 crore in the corresponding quarter a year ago.
Shares of Dabur are trading 4 percent lower despite some positive brokerage commentary at Rs 509.70.
