Says some 'green shoots' emerging despite near-term consumption pressure
The derivative analyst from HDFC Securities recommends to Buy Dabur 530 Put option and simultaneously Sell 525 Put of the March series.
The expansion comes as Dabur faces intensifying competition from deep-pocketed rivals - including global consumer titan Unilever Plc - which are swooping in on upstart Indian brands
Customers shifting to more affordable, smaller packs slows down FMCG firm's rural growth
In fact, the drop off in rural spending slowed the entire FMCG sector's growth in the last three months of 2022, compared with the previous quarter, market intelligence firm NielsenIQ said on Thursday
In their quarterly update, Godrej Consumer Products, Dabur, and Marico witnessed sluggish growth in the December quarter (Q3) driven by poor rural consumption and a slowdown after the festival season
On account of challenging macro-economic environment and muted category growths in the quarter, the management anticipates to report low to mid-single digit revenue growth
Stocks to Watch Today: Dabur India promoters, the Burman family, sold 1 per cent stake in the company through a block deal on Tuesday.
" The purpose of doing this transaction is to raise funds for financing some ventures in the private hands of the Burman family," the exchange filing said
Prominent promoters have recently offloaded stake in companies like TVS Motor, GMM Pfaudler via block deals, few others plan to do so in the near future.
At 09:15 am, around 18.2 million equity shares, representing 1.02 per cent of total equity of Dabur India, changed hands on the BSE
Product will only be sold online, comes in two variants
RBI governor Shaktikanta Das said that rural demand is recovering as reflected in the pace of tractor and retail two-wheeler sales, with rising farm activity
Normal monsoons, good harvest & increase in MSP will drive demand in rural markets in the near/medium term, according to analysts.
The management said that the transaction is expected to be Cash EPS neutral in the first year and accretive thereafter.
'We are very reluctant because price rise has an impact on the demand as well as the volume growth', he said