Dabur India Share Price in Focus; Up 0.37%

On December 10, 2024, Dabur India’s share price (NSE: DABUR) was trading 0.37% higher at ₹508.50 at noon. The stock opened at ₹507.95, slightly higher than its previous close of ₹506.85. During early trade, the share price dropped to a low of ₹504.35 before recovering and regaining the day’s losses in the noon session.

FMCG Stocks Face Pressure 

Fast-moving consumer goods (FMCG) stocks have been under pressure since the start of this week.

As per news reports, Godrej Consumer Products announced weak demand for the third quarter, as the urban demand slowdown may continue to impact volumes and margins beyond the third quarter.

Godrej Consumer Products stated that the FMCG market has experienced subdued demand in recent months, which has affected growth. The increase in palm oil and derivatives prices has particularly impacted the soaps category, prompting the company to implement price hikes.

Dabur India Q2 FY25 Financial Highlights

Dabur India, reported a decline in net profit, falling to ₹425 crore in the second quarter of fiscal 2025, impacted by high food inflation and heavy monsoon rains. In the same period last year, the company posted a net profit of ₹515.1 crore.

The maker of products like Hajmola and Real Fruit Juice also saw a decrease in net sales, which amounted to ₹3,028.6 crore compared to ₹3,203.8 crore in the previous year.

“In recent years, we’ve observed a significant shift in consumer buying behaviour, with an increasing preference for emerging channels like quick commerce, which has grown at a strong pace, while general trade faces pressure,” said Mohit Malhotra, CEO of Dabur India.

The decline in sales was further compounded by a one-time inventory rationalisation exercise for the general trade channel.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.