In covid-19 times, consumer goods firms selling essential items are considered relatively better off. Stocks of these firms have become a place to hide for investors, so much so that shares of fast-moving consumer goods companies Hindustan Unilever Ltd and Nestlé India Ltd have touched new 52-week highs this month.
Smaller peer, Dabur India Ltd’s stock is not far behind, rising nearly 10% so far in 2020, compared to the 24% drop in the Nifty 200 index.
At present, the stock is just 4% shy of its 52-week high seen on the National Stock Exchange on 5 March. The stock trades at 49 times estimated earnings for FY21, according to Bloomberg.