Analysts'picks: Dabur India
Macquarie has downgraded its rating on Dabur India to ‘neutral’ from ‘outperform’, citing expensive valuations and a lack of near-term triggers. The brokerage has retained its price target of Rs 100 for the stock.
CMP: Rs 110.85
Target price: Rs 100
Macquarie has downgraded its rating on Dabur India to ���neutral��� from ���outperform���, citing expensive valuations and a lack of near-term triggers. The brokerage has retained its price target of Rs 100 for the stock.
���The share price has rallied 18% in the past two months on speculation that its retail venture would be hived off and of a broader market rally,��� a Macquarie note to clients said, adding the stock was expensive at over 20 times estimated FY10 earnings. ���The management has ruled out any price increase until October 2009.
It also denied any plans to hive off the retail division while clarifying its target of opening 15-20 new stores during the year,��� the note added. ���We believe that multiple growth drivers will help Dabur remain one of the fastest-growing FMCG players in India. ,��� the note said.
Target price: Rs 100
Macquarie has downgraded its rating on Dabur India to ���neutral��� from ���outperform���, citing expensive valuations and a lack of near-term triggers. The brokerage has retained its price target of Rs 100 for the stock.
���The share price has rallied 18% in the past two months on speculation that its retail venture would be hived off and of a broader market rally,��� a Macquarie note to clients said, adding the stock was expensive at over 20 times estimated FY10 earnings. ���The management has ruled out any price increase until October 2009.
It also denied any plans to hive off the retail division while clarifying its target of opening 15-20 new stores during the year,��� the note added. ���We believe that multiple growth drivers will help Dabur remain one of the fastest-growing FMCG players in India. ,��� the note said.
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