275% Dividend: Dabur India Shares In Green Despite 17% Fall In Q2 Net Profit, Buy/Sell?

FMCG major Dabur India Ltd shares traded in green despite 17% YoY fall in Q2 FY25 net profit to Rs 425 crore as against the net profit of Rs 515 crore declared in the corresponding quarter of last year. The company declared its revenue for the quarter ended September 2024 at Rs 3029 crore, down 5% as against the revenue of Rs 3204 crore reported in the similar quarter of last year. Last trading price of Dabur India Ltd shares on BSE is Rs 546.95 per share with intraday gain of 2.07%. It also recommended an interim dividend of Rs 2.75 per share (275%) for FY 2024-25. Check details below:

Dabur India Q2:

Despite a chattenging demand environment marked by high food inflation and a resultant squeeze in urban demand, Dabur continued to drive consumer engagement across its key brands to end the second quarter of 2024-25 with a Consolidated Revenue of Rs 3,029 crore.

"Over the past coupte of years, we have witnessed a marked shift in consumer buying patterns in favour of emerging channels tike quick commerce, driven by the convenience this channeI offers. This has resulted in the emerging channels growing at high teens, putting the General Trade under stress. To address the changing dynamics in the marketplace and support our distributor partners in tiding over the challenges, we took a proactive decision to rationalize inventory in the GeneraI Trade, which resulted in a temporary dip in sates during the quarter. However, the move has resulted in improving the long-term health and hygiene of our business, paving the way for healthy growth going forward," Dabur lndia Limited Chief Executive Officer Mr. Mohit Malhotra said.

Dabur India Recommends Dividend:

As per the exchange filing of Dabur India dated October 30, 2024, "the Board of Directors of the Company in its meeting held today have declared Interim Dividend of Rs. 2.75 per equity share having face value of Re. 1/- each (i.e., 275%) for the financial year 2024-25."

Dabur India Shares Performance:

The 52-week high price of Dabur India shares on BSE is Rs 672.00 per share (as on 17/09/2024) and 52-week low price is Rs 489.00 per share (as on 16/04/2024), respectively. The company's market capitalisation is Rs 96,936.57 crore. Dabur India shares slipped 13% in last 3-months, gained over 4% in last 1-year, and fell 6% in last 3-years. Dabur India stock jumped 18% in last 5-years.

Dabur India Shareholding:

FII/FPI have decreased holdings from 15.82% to 14.99% in Jun 2024 qtr. Number of FII/FPI investors increased from 802 to 807 in Jun 2024 qtr. Mutual Funds have increased holdings from 5.98% to 6.25% in Jun 2024 qtr. Number of MF schemes decreased from 30 to 29 in Jun 2024 qtr. Institutional Investors have increased holdings from 28.39% to 28.55% in Jun 2024 qtr, according to Trendlyne.

Dabur India Bonus Share History:

The FMCG major declared a total of 3 bonus issues since January 19, 2006. Dabur's last bonus share was announced in the proportion of 1:1 with ex-date fixed as September 8, 2010.

LIC Stake In Dabur India:

Life Insurance Corporation Of India (LIC) has 3.71% stake in Dabur India as the PSU insurer has 65,828,461 shares of the company as of June quarter.

Dabur India Stock Split History:

Dabur India split the face value of its shares once since November 27, 2000. It last sub-divided face value of its shares from Rs 10 to Re 1 in 2000. The share traded ex-split on November 27, 2000.

Should You Buy Dabur Shares On Corrections?

Citi has recommended sell call with slashed target price of Rs 570 per share as the analyst decided to cut FY25-27 earnings estimates by 3-6%. Macquarie assigned neutral rating to Dabur India shares with target price reduced to 560/share. The firm expects sales growth to recover from October but sluggish demand momentum is concerning, said Macquarie.

About:

Dabur India Limited is a leading Indian consumer goods company with interests in hair care, oral care, health care, skin care, home care and food & beverages. Dabur India Ltd. is one of India's leading FMCG Companies with Revenues of over Rs. 11,530 Crores & Market Capitalization of over Rs. 96,500 Crore. Building on a legacy of quality and experience of over 139 years, Dabur is today India's most trusted name and the world's largest Ayurvedic and Natural Health Care Company, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of Citi and Macquarie. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.