Dabur India share price gained in early trade today despite the FMCG firm recording a 24.1% fall in its Q4 profit. Share price of Dabur India touched an intraday high of Rs 447.05 rising 4.27% against previous close of Rs 428.75. Dabur India stock is trading higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.
Dabur India share has gained 11.54% in one year but lost 2.89% since the beginning of this year. Market cap of the firm rose to Rs 78,386 crore.
At 1: 55 pm, the stock was trading 3.74% higher at Rs 444.80.
Brokerages were positive about the prospects of the company's share after Q4 earnings poured in. Dabur India reported a 24 per cent fall in consolidated net profit at Rs 281.6 crore against Rs 370.43 crore in Q4 FY19. Consolidated revenue for the quarter declined 12.35% to Rs 1,865 crore against Rs 2,128 crore a year ago. The company's consolidated EBITDA fell by 18.2 per cent to Rs 428.1 crore in Q4 FY20 from Rs 523.3 crore in the same quarter previous year.
Earnings per share fell 24.29% to Rs 1.59 in Q4 of last fiscal compared to Rs 2.10 in the corresponding quarter of FY 19.
Jefferies said the firm faced severe challenges in Q4 and missed forecasts comprehensively. The 15% decline in domestic volumes is among worst in its history. The brokerage maintained Buy call on the stock paring target price to Rs 500 from Rs 552. It cut FY21-22 EPS estimates of the firm by 2-3%.
Credit Suisse also cut its target price to Rs 475 from Rs 500 after the Q4 earnings. It said, "Pre-COVID growth was at 6%. Healthcare portfolio of the firm is well positioned to gain post-COVID. International business did relatively better in Q4. Management sees further Rs 400-450 crore revenue impact in first quarter of FY21.
UBS said the firm missed Q4FY20 estimates. Herbal could be growth driver in FY21. Domestic revenue declined 17.3% YoY with 14.6%YoY vol decline. The brokerage sees 53.5% of Dabur's domestic business as tailwind segments. It gave a buy call on the stock with a target price of Rs 540.
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