Dabur India share price jumps 5% as Chyawanprash sales surge; check brokerages’ target price

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Published: May 28, 2020 1:32 PM

In an attempt to cash in the opportunity, Dabur India has also ventured into the personal and household hygiene space with the launch of hand sanitisers, air sanitisers and disinfectants.

 

Dabur India, Dabur share price, Dabur india Post March financial result announcement, a few research and brokerage companies are bullish on the stock with an upside of up to 21 per cent

Even as fast-spreading coronavirus hit Dabur India’s net profit for the March quarter, the company has been witnessing a whopping 400 per cent surge in demand for immunity boosting Chyawanprash and 80 per cent growth in Dabur Honey. During this pandemic, Dabur is becoming future ready to turn the challenges into opportunities by chalking out new strategies to navigate through the new normal. With a consumer shift to preventive healthcare and personal hygiene, the company has already rolled out immunity boosters like Dabur Tulsi Drops, Dabur Amla Juice, Dabur Giloy-Neem-Tulsi juice and Dabur Immunity Kit, etc. Post March financial result announcement, a few research and brokerage companies are bullish on the stock with an upside of up to 21 per cent. “We expect flat sales growth in FY21 and strong 16% recovery in FY22E considering its strong rural presence that may see higher growth with migrants moving back and increase in government welfare spend,” ICICI Direct Research said in its latest research report. It has maintained a ‘buy’ rating to the stock with a target price of Rs 520 per share, an upside of 21 per cent from Wednesday’s close.

In an attempt to cash in the opportunity, Dabur India has also ventured into the personal and household hygiene space with the launch of hand sanitisers, air sanitisers and disinfectants under the Dabur Sanitize brand. Another research and brokerage firm JM Financial said that “the narrative being built around immunity-boosting properties of Chyawanprash and a few other products in Dabur’s portfolio is interesting, but not entirely convincing just yet, in our view”. The firm has, however, reduced its price target from previous Rs 465 to Rs 445, recommending to ‘hold’ the stock.

Also read: Chyawanprash sales jump 4 times due to coronavirus, says Dabur; key takeaways from Q4 results

Around 1 PM, Dabur India shares were trading 4.26 per cent higher at Rs 447.05 apiece on BSE. The stock hit a 52-week high of Rs 525.30 in March, since then, Dabur India share price has plunged 18 per cent. The company’s diversified portfolio makes it immune from any economic, regulatory and seasonality risks, including current COVID-19 scenario where customers are looking for healthy and immunity-boosting products that other peers might have to tackle, says Philip Capital. From yesterday’s close, the stock will have to jump 12 per cent to touch the target price of Rs 480 predicted by the brokerage firm. The brokerage firm has recommended to ‘buy’ the stock.

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