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Mumbai: Dabur India Ltd on Thursday joined the elite club of 1 trillion market cap with its shares hitting a fresh record high.

The stock touched an all-time high of 579.90 intraday. The scrip settled at 572.85 on the BSE, up 2.23%. Dabur's market capitalization stood at 1.01 trillion.

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The company may declare its March quarter earnings on 7 May. It is expected to post strong earnings due to a weak base of last year. Health supplements, over-the-counter and ethicals, oral care and juices growth trends would be key to watch, said analysts.

Dabur delivered a strong growth in retail offtake on the back of strong traction in foods, beverages and oral care.

Analysts said higher rural salience, and any potential uptick in rural consumption could benefit Dabur disproportionately. Overseas operations (West Asia, in particular) could be challenged in the short term on account of a subdued macro.

Brokerage firm JP Morgan extended its target price timeframe (PT) to March 2022 and set a new March 2022 PT of 600, which is based on a 48x one-year forward P/E multiple, in line with the past-three-year average multiple.

"Chyawanprash witnessed a sequential decline in demand, which is generally a normal trend, while honey demand further moderated due to competitive intensity. Notably, the new mango drink has been receiving good traction. Overall, Dabur is expected to deliver 31% growth during the Q4FY21," said Antique Stock Broking in a note to its investors.

"There were no new product launches during the month. We understand that Dabur managed inventory levels very efficiently in March. Overall inventory levels with distributors came down from 7-10 days in February 2021 to about 6-8 days. The supply chain was normal with no stock out witnessed in any category," Antique Stock Broking added.

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