Dabur India shares hit 52-week low for third session, oversold on charts; what’s next?

Shares of Dabur India fell to a fresh 52-week low for the third straight session on Tuesday. Share price of Dabur India touched a low of Rs 489, falling 1.26% against the previous close of Rs 495.25. The stock opened marginally higher at Rs 495.75 in early deals today. Market cap of the FMCG firm declined to Rs 89,115 crore.

The stock has closed lower in the last two sessions. Dabur stock is trading in the oversold zone, signals its Relative Strength Index (RSI), which is has fallen to 29.5. A RSI below 30 indicates stock is trading in the oversold zone and above 70 signals that the stock is trading in the overbought zone.

Dabur stock is trading lower than the 5 day, 20 day, 50 day 100 day and 200 day moving averages.

Dabur India stock has lost 5% in a year and fallen 10% since the beginning of this year. Market cap of the firm stood at Rs 88,788 crore. Total 0.33 lakh shares changed hands amounting to turnover of Rs 1.62 crore.

Nuvama Institutional Equities expects the stock to reach Rs 680 mark. It has maintained a BUY call on the stock with a target price of Rs 680.

“International business shall grow in double digits YoY. For the stock to re-rate, Dabur needs to deliver a consistent top-tier performance in the sector. Maintain ‘BUY’ with a target price of Rs 680,” said Nuvama.  

It sees operating profitability in Q4 below expectations.

“We expect consolidated revenue/EBITDA to grow 5%/9% YoY while PAT shall decline 2.5% YoY. Consolidated revenue growth is likely to be lower than Q3 as inorganic revenue growth of 2.3% till Dec-23 is now in base (Badshah acquisition). Domestic business shall grow 5%/3.5% YoY in value/volume terms. International business shall grow 11% YoY in CC terms but 5% in INR terms,” said Nuvama.

Emkay Global Financial Services expects the stock to hit Rs 660 mark.

“Dabur India is likely to see a 5% topline growth, where domestic revenue is expected to grow 5% with 4% volume growth. International revenue growth is expected to be in double digits in constant currency, but currency devaluation in Turkey and Egypt is expected to affect translated growth in mid-single digit. EBITDA/PAT growth are likely to be 8%,” said Emkay Global