On April 6, Dabur India shares tumbled over 2.5% in the morning trade after the firm said it would report mid-single-digit revenue growth in Q4FY23, demonstrating no important improvement from the earlier few quarters. The company had clocked 3.5% topline growth in Q3 and 6% in Q2.

The FMCG major enlarged spending on its brands, pressuring the operating margin, which is anticipated to be lower by 200-250 Bps associated with a Q4FY22 margin of 18%.

At 10:15 am, the stock traded at Rs 534.40 on the NSE, down 2.49%. The stock moved sideways over the past year, down by 1.8%.

The company stated in an exchange filing that the demand trajectory across urban and rural markets in India had shown a minor improvement. However, it falls short of a full recovery. Urban markets returned to positive volume growth, and the rural markets remained muted.

Dabur originates about 47% of its revenue from rural India, which has been stressed amid inflationary pressures. The company’s net profit fell YoY basis over the last four quarters. F&B businesses can probably report robust double-digit growth in segmental performance, while personal care categories saw a slowdown.

The quarter also marks the link of Badshah Masala. “The business proceeds with the integration and is tracking as per prospects,” says the company.

Analysts are optimistic about the stock, with Trendlyne data signifying an average target of Rs 638.22. This means an upside of 16.88% from the current market price.