BofA warns Fed risks policy mistake with early rate cuts
On Monday, Dabur India (NSE:DABU) Ltd. (DABUR:IN) experienced a change in its stock rating as UBS analyst Amit Sachdeva downgraded the company from Neutral to Sell. Accompanying the downgrade, the price target was also reduced significantly to INR 470.00, a drop from the previous target of INR 600.00.
The downgrade by UBS is based on concerns regarding heightened competition within the beverages sector, which is perceived as a structural risk that could potentially hinder Dabur’s sales growth over the medium term. The UBS analyst noted that the competitive landscape could lead to challenges in sales growth for Dabur.
UBS also pointed out that they do not anticipate any margin expansion for Dabur in the fiscal year 2026 estimates (FY26E). This expectation is due to the company’s strategic decision to increase advertising expenditure in an effort to counteract competition and stimulate volume growth amidst a subdued demand environment.
The revised price target reflects UBS’s expectations for Dabur’s financial performance over the next few years. The firm has constructed a model forecasting revenue, EBITDA, and EPS compound annual growth rates (CAGRs) of 7.1%, 8.7%, and 8.8%, respectively, from FY25 to FY27E. These projections are notably lower than the consensus estimates, indicating a more conservative outlook on Dabur’s financial growth trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.