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Dabur India share price dips 3%, nears 52-week low; here’s why | Markets News


Dabur India share price movement

 


Dabur India share price dipped 3 per cent to ₹411.15 on the BSE in Tuesday’s intra-day trade following reports that the food regulator Food Safety and Standards Authority of India (FSSAI) banned ”100 per cent” claims on honey, ghee, coconut water. The BSE has sought clarification from Dabur India.

 


The stock price of the personal care company hit a 52-week low of ₹401.05 on March 30, 2026. It touched 52-week high of ₹576.80 on September 4, 2025.

 

Meanwhile, in the past month, Dabur India’s stock price underperformed the market by falling 9 per cent, compared to a 0.23 per cent rise in the BSE Sensex. Further, thus far in the calendar year 2026, it slipped 18 per cent, against 7.9 per cent decline in the BSE Sensex.

 
 


Why is Dabur India share price under pressure?

 


According to a Press Trust of India (PTI) report, the food regulator FSSAI has prohibited Dabur India from selling many products such as honey, cow ghee, and edible oils using ‘100 per cent’ claims, saying that such labelling is against the law.

 

Giving details about the violations, the FSSAI said that “food products being sold on the company’s website were found carrying misleading ‘100%’ claims such as ‘100% Natural’, ‘100% Pure’, ‘100% Purity Guaranteed’, ‘100% Organic’ and ‘100% Tender Coconut Water’.” CLICK HERE FOR FULL REPORT

 


Dabur India – Brokerages view on stock post Q1 results

 


Motilal Oswal Financial Services noted that Dabur’s April to June 2026 quarter (Q1FY27) consolidated revenue grew 11 per cent year-on-year (Y-o-Y), below the estimated 13 per cent, while India business revenue increased 9.5 per cent Y-o-Y. 

 


India volume growth came in at 5 per cent below the estimated 8 per cent, partially impacted by unseasonal rainfall (beverage portfolio). “Rural demand continued to outpace urban markets. The management reiterated its confidence in delivering double-digit growth across business verticals during FY27, supported by a slightly higher mix of pricing.”

 

After delivering muted sales growth in the past two years (1.3 per cent in FY25 and 5 per cent in FY26), Dabur expects double-digit consolidated revenue growth in FY27, accompanied by gradual margin improvement. Management expects growth to be driven by a healthy mix of volume and pricing, with pricing contributing marginally more. Operating margins are expected to improve through calibrated price hikes, premiumization, productivity initiatives and ongoing cost-saving measures, while mitigating commodity inflation, the brokerage firm said. 

 


Resilient rural demand, coupled with signs of improving urban demand, bodes well for Dabur’s growth outlook. However, the pace of demand recovery, commodity inflation and the progress of the monsoon (including any El Ninorelated risks) remain key monitorables for FY27, it added. MOFSL reiterates a ‘Neutral’ rating on the stock with a target price of ₹475 (based on 35x Mar’28E EPS).

 


Meanwhile, Dabur’s management expects inflationary pressures, particularly those arising from the Middle East, to gradually moderate, while remaining prepared to implement additional pricing actions or cost optimisation measures if required. Looking ahead, the company reiterated its guidance of double-digit revenue growth for FY27, supported by sustained demand momentum across both domestic and international markets.

 


Dabur’s long-term growth trajectory remains intact, and hence, analysts at Axis Securities said they maintain a ‘BUY’ rating on the stock. However, the brokerage remains cautious regarding the uncertainty in the West Asia conflict, and hence analysts cut FY27/FY28 estimates.

 


Analysts at Anand Rathi Research believe Dabur India remains well-placed to deliver healthy earnings growth, aided by premiumisation, pricing and improved operating leverage. Thus, they maintain BUY rating on the stock with a target price of ₹550 (from ₹590 earlier), valuing it at 42xFY28e EPS (vs. 45xFY28e EPS previously). Key risks are failure of new launches; pricing competition; unwarranted/overpriced bolt-on acquisitions; and geopolitical turbulence, they said.  ============================================


Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised. 

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