Why is Dabur India falling/rising?

Jul 10 2025 09:06 PM IST
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As of 10-Jul, Dabur India Ltd. is priced at 522.35, having gained 8.09% over the last week, outperforming the Sensex. Despite recent short-term gains, the stock has a year-to-date return of 2.86% and a significant decline of 17.43% over the past year, indicating long-term growth challenges.
As of 10-Jul, Dabur India Ltd. is currently priced at 522.35, reflecting a slight increase of 0.2 (0.04%). The stock has been on an upward trend, gaining for the last seven days and achieving an overall return of 8.09% during this period. It has outperformed its sector by 0.63% today and is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Despite a year-to-date return of 2.86%, the stock has faced challenges with a significant decline of 17.43% over the past year. Factors contributing to its recent price movement include high management efficiency indicated by a return on equity (ROE) of 19.54%, a low debt-to-equity ratio, and strong institutional holdings at 28.37%. However, the company has shown poor long-term growth with net sales and operating profit growth rates of only 7.62% and 3.54%, respectively, over the last five years, alongside recent negative quarterly results.

In the broader market context, Dabur India's short-term performance has been notably better than the benchmark Sensex, which has seen a marginal decline of 0.06% over the past week, while Dabur has risen by 6.38%. This indicates that the stock is gaining traction in a relatively stagnant market. However, the company's long-term underperformance is evident, as it has consistently lagged behind the benchmark over the last three years, with a return of -17.43% compared to the Sensex's positive performance. The combination of recent positive momentum and the challenges posed by its long-term growth prospects creates a complex picture for investors considering Dabur India Ltd.
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