Though the Q2FY23 performance did not hit home right, the news of Dabur taking a majority stake in popular spice brand, Badshah spread the cheer.

The company announced that it has bought a 51% stake in Badshah for a cash consideration of Rs 587 crore. The acquisition is expected to be completed before March 31, 2023.

The company also announced a capex plan of Rs 325 crore for its Indore project with proposed capacity addition for Red Toothpaste, one liter juice and portion packs.

This acquisition is being looked upon as a big positive by major brokerage houses as they put out reports stating that this buying of Badshah will significantly boost the company’s kitchen condiments ambitions, calling it a “big positive.”

On the performance front, the company reported a 3% (YoY) decline in consolidated net profit at Rs.491 crore on a 6% increase in revenue at Rs.2986 crore.

The good part about its earnings – it reported a gain in market share across 95% of its product portfolio. The company stated that its market share in Juices and Nectars rose 410 bps, Digestives category improved 270 bps, Chyawanprash increased 120 bps, Shampoo category improved 40 bps and hair oils market increased 20 bps.

The stock is in the green today morning, earnings itself a bright spot. The price rose 3% to hit an intraday high at Rs.548. Its 52-week high is at Rs.620 while the 10% UC for today is at Rs.585.30.