Dabur Shares Rise as Delhi HC Stays FSSAI ‘100% Claim’ Order

Dabur India shares saw a rebound on Friday, August 7, after the Delhi High Court granted interim relief by staying a directive from the Food Safety and Standards Authority of India (FSSAI).

The FSSAI order, issued earlier in the week, had prohibited Dabur from marketing products such as honey, apple cider vinegar, virgin coconut oil, sesame oil, and cow ghee with “100 per cent” claims.

Court Grants Interim Relief

• Stock: Turned positive, trading flat with a slight positive bias at ₹411.75 apiece on the National Stock Exchange (NSE).
• Court: Justice Amit Mahajan of the Delhi High Court noted Dabur had sold these products for decades.
• Reasoning: FSSAI order passed without providing Dabur an opportunity for a hearing, violating natural justice principles.
• Next Hearing: Impugned order stayed until the next hearing, scheduled in two weeks.

Government counsel, representing the Centre, defended the regulator’s actions, citing previous improvement notices and advisories issued to Dabur. The counsel argued the “100 per cent” claim was misleading.

Analyst Outlook and Technical Levels

Gaurang Shah, Senior Vice President at Geojit Financial Services, expressed a bullish outlook on Dabur India shares. He highlighted the company’s long-standing market presence, strong goodwill, and extensive product portfolio.

• Q1 FY27 Revenue Growth: Consolidated revenue growth of 10.6 per cent year-on-year.
• Business Growth: Strong growth reported in both India and international businesses.
• Shah’s View: Court order should resolve the issue unless FSSAI presents further evidence against the claim.

However, Hitesh Jain of Angel One provided a cautious technical outlook for Dabur. The stock continues to exhibit a weak technical structure, failing to achieve a significant recovery despite a broader market rebound.

• Technical Trend: Trading below its major exponential moving averages, indicating a bearish trend.
• Support Zone: Near a crucial long-term support zone of ₹410–400.
• Downtrend Acceleration: A decisive break below this level could accelerate the downtrend.
• Relief Rally Trigger: A move above ₹425–430 could trigger a short-term rally.
• Trend Reversal: A decisive breakout above ₹480–490 would be needed to confirm a meaningful trend reversal.

The Delhi High Court’s interim stay offers immediate relief to Dabur India, impacting its stock performance. Investors now monitor the upcoming hearing and technical levels for future direction.