e.l.f. Beauty stock plummets 20% as revenue and guidance fall short of expectations
Investing.com - Investec has reduced its price target on Dabur India Ltd. (NS:DABUR) to INR509.00 from INR550.00 while maintaining a Hold rating on the stock, citing slower-than-expected growth and muted margin gains.
The consumer goods company reported soft 5% growth despite a favorable base, according to Investec analyst Harit Kapoor. Growth was primarily driven by the Home & Personal Care (HPC) segment, while healthcare and foods segments continued to underperform.
Operating margins showed minimal improvement, increasing by only 20 basis points year-over-year. Management has indicated expectations for a gradual recovery in growth, with the second half of fiscal year 2026 projected to achieve mid-to-high single digit growth.
Investec’s downward revision reflects both the disappointing quarterly performance and anticipated slower growth recovery. The firm has cut its earnings per share estimates by 4% and reduced its target multiple to 40x from the previous 42.5x.
The new price target is based on a September 2027 valuation timeframe, with the reduction in target multiple offsetting the benefit of the extended valuation period.
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