Why is Dabur India falling/rising?

Jul 21 2025 09:07 PM IST
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As of 21-Jul, Dabur India Ltd. is facing a stock price decline to 514.60, down 1.57%, with a significant 18.58% drop over the past year. Despite high institutional holdings, concerns arise from poor long-term growth metrics and consistent underperformance against the benchmark.
As of 21-Jul, Dabur India Ltd. is experiencing a decline in its stock price, currently at 514.60, which reflects a decrease of 8.2 points or 1.57%. The stock has underperformed its sector by 0.92% today and has been on a downward trend for the last two days, resulting in a total fall of 2.54%. Over the past week, the stock has decreased by 2.24%, while it has shown a modest increase of 10.36% over the past month. However, its long-term performance has been concerning, with a significant decline of 18.58% over the past year and a 10.07% drop over the last three years. Factors contributing to this decline include poor long-term growth metrics, such as a low annual growth rate in net sales and operating profit, alongside negative quarterly results that indicate a substantial drop in profit before tax and profit after tax compared to previous averages.

In the broader market context, Dabur India's recent performance contrasts with the benchmark Sensex, which has remained relatively stable with a slight decline of 0.06% over the past week and a positive return of 5.20% year-to-date. While Dabur has high institutional holdings at 28.37%, indicating some level of confidence from larger investors, the stock's expensive valuation and consistent underperformance against the benchmark over the past three years raise concerns. The company’s high management efficiency and low debt-to-equity ratio are positive aspects, but they are overshadowed by the overall negative sentiment stemming from its declining profitability and growth prospects.
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