Dabur stock fall may provide entry to long-term investors

Dabur's performance in the July-September quarter of the current financial year (Q2FY25) was weak but in line with consensus. Consolidated revenue declined 5 per cent year-on-year (Y-o-Y) due to a temporary adjustment in General Trade (GT) inventory.

- DEVANGSHU DATTA

Indian revenue declined 7.6 per cent, while international business grew 13 per cent Y-o-Y in constant currency (CC) terms.

Sales declined 5.5 per cent to ₹3,030 crore. Indian revenue declined by 7.6 per cent while secondary growth was 2.3 per cent. Ebitda dropped 16 per cent to ₹550 crore, adjusted PAT decreased 17 per cent Y-o-Y to ₹430 crore.

Across segments, home & personal care (HPC) sales dropped 8 per cent Y-o-Y, while Healthcare declined 10 per cent and F&B's (food and beverage) sales were down 21 per cent Y-o-Y. But HPC and health care's secondary sales grew 6 per cent and 4 per cent, respectively, while F&B's secondary sales slumped 11 per cent Y-o-Y. Oral care grew 5 per cent in secondary sales, while home care hit a growth of 9 per cent. Dabur Red Toothpaste continued to gain market share.

The digestives segment increased 9 per cent, and foods posted 21 per cent while beverages declined 12 per cent. Badshah Masala saw 15 per cent growth.