Dabur India shares gain on attractive valuations

Written by PTI | Updated: Nov 21 2013, 21:24pm hrs
Dabur IndiaDabur shares have fallen 8.4 percent relative to the benchmark index over the previous 30 days. Reuters
Shares in Dabur India Ltd gained 2 percent as dealers cite attractive valuations after recent underperformance.

Dabur is trading at near 26 times its 12-month forward earnings compared to over 31 times earnings for rivals Hindustan Unilever Ltd, Nestle India Ltd and Colgate Palmolive (India) Ltd, according to StarMine data.

Dabur shares have fallen 8.4 percent relative to the benchmark index over the previous 30 days as per StarMine data, the highest lag among its consumer goods peers.

Dealers say recent falls in Dabur shares were due to a reduction in its weightage in MSCI indexes, rather than any change in the company's fundamentals.

Dabur shares were trading very close to their 200-day moving average at about 155 rupees, which has acted as a strong support since the end of 2011.