Dabur India falls after the promoter sells a small interest.

While the stock has increased by 14 percent in the previous six months, it is down by more than 1.5 percent in 2022.

Dabur India falls share price began lower on December 20 after 16.5 million shares, or 0.9 percent ownership, changed hands in five lots. While the buyers and sellers were not immediately revealed, it had previously been rumoured that the company’s promoters were trying to sell a small interest.

The stock was trading at Rs 571.05 a share on the National Stock Exchange at 9:30 a.m., down 3%. Simultaneously, trading volumes reached 3.99 million shares, above the 20-day average volume of 2.68 million.

While the stock has increased by 14 percent in the previous six months, it is down by more than 1.5 percent in 2022.

According to rumours, Dabur’s promoters were considering selling the share at a four percent discount to the market price on December 19, with Goldman Sachs acting as the deal’s broker.

Burman family, the promoter and promoter group of the firm, cumulatively owned a 67.24 percent share in the company as of September end. With today’s transaction, their stake will be reduced to 66.3 percent.

With 33 buy calls, 11 hold calls, and 1 sell call, analysts are mostly bullish on the stock. The 12-month target price according to Bloomberg is Rs 632.

In Q2, the indigenous FMCG major recorded a 2.85 percent year-on-year fall in its consolidated net profit to Rs 490.86 crore while its revenue from operations grew 6 percent to Rs 2,986.49 crore.

Despite the drop in net profit, analysts praised the company’s announcement of market share increases across 95 percent of its product line and the purchase of Badshah Masala.