Shares of Dabur India Ltd. hit an eight-week low on Thursday after reports claimed the presence of carcinogenic materials in its honey product.
According to a report by Zee News, high concentration of carcinogenic material was allegedly found in the popular brand Dabur Honey.
Honey products contribute 6–7% to Dabur's revenues in India, Abneesh Roy of Nuvama Wealth Management writes in a note. "We don't expect a big impact on honey sales over longer term," Roy said, adding that in the short-term sales may face a “small impact”
Shares of Dabur were trading 1.53% lower at Rs 557 apiece compared to a 0.13% decline in the benchmark NSE Nifty 50 as of 11:31 a.m. The stock fell as much as 3.54% to Rs 545.65 apiece, the lowest level since June 6.
The stock has fallen 0.63% year-to-date. It hit a fresh record on July 6 at Rs 597.1 apiece and a record low of Rs 503.65 per share on May 5.
The total traded volume stood at three times its 30-day average. The relative strength index at 40.6.
Out of the 46 analysts tracking Dabur, 29 maintain a 'buy' rating on the stock, 15 recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 5.1%.
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