Dabur India's share price hit over four-year low, falling over 7%, after Nuvama highlighted continued weakness in the company's domestic performance.
Dabur's consolidated revenue is expected to remain flat year-on-year, a significant downgrade from the earlier estimate of 3.1% growth, Nuvama said. This stagnation is attributed to delayed and truncated winters, which have impacted sales.
The company's Ebitda is projected to fall by 9.1% year on year, compared to the previous estimate of 2.3% growth. This decline is due to the combined effects of inflation and operating deleverage.
Despite the current challenges, Nuvama retained a 'buy' rating on Dabur India, with a target price of Rs 635 per share.