Dabur share price hits new 52-week high, stock surges amid strong growth outlook

Amid a strong growth outlook, the shares of Dabur surging for three and a half per cent, touched a new 52-week high of Rs 587.95 on the BSE intraday trade on Thursday. It breached its previous high of Rs 582.70, hit on June 16, 2021.

The stock today opened mute but has gained momentum as around 12:45 pm, it’s up over three per cent to 586.5 per share, as compared to 0.12 per cent fall in the S&P BSE Sensex today.

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The FMCG (fast-moving consumer goods) major has outperformed the market by soaring nearly nine per cent in the last one month, with an expectation of improving operational performance. The benchmark S&P BSE Sensex gained by 0.9 per cent during the period in comparison.

On June 23, the company had announced that it will set up a new plant at Madhya Pradesh with an estimated total investment of Rs 550 crore. It has already secured a 51-acre land parcel and begun construction work for the initial phase, which is scheduled to be completed within the current fiscal. 

Dabur has also availed the state government’s Mega Projects Scheme to materialise its plan, along with recently launched production linked incentive (PLI) scheme for the food processing sector by the central government. 

Amid covid concerns, Dabur India’s quarter four performance was somewhat affected by low stocking, however, secondary sales growth was better. Similarly, a sequential slowdown in healthcare was high despite the low stocking impact. 

June quarter (Q1FY22) perhaps could boost healthcare growth again, concerns remain over a post-pandemic slowdown. Management targets low single-digit growth in health supplements for FY22.

Its portfolio includes nine Brands they are: Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara and Dabur Lal Tail in the Healthcare space, while Dabur Amla, Dabur Red Paste, and Vatika in the Personal care space; and Réal in the Foods category.