Shares of Dabur India are trading with losses on Wednesday after brokerage firm Citi downgraded the stock to sell from its earlier recommendation of buy.

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Citi also cut its price target on the stock from Rs 620 earlier to Rs 460.

The brokerage in a note mentioned that it sees various challenges ahead for Dabur when it comes to the company's growth and profitability.

Citi believes that there are risks to growth across Dabur's categories and the management's recent commentary suggests that things may improve only gradually in financial year 2024.

Multiple margin pressures and potentially increasing competitive intensity in the sector are other risks faced by the company, Citi stated. Currency devaluation may impact the company's international business, it said.

As a result, Citi has also cut its financial year 2024-2025 earnings estimates for Dabur by 11-12 percent.

Dabur's net profit remained flat for the March quarter on a year-on-year basis, missing street expectations of a 20 percent growth.

In its recent analyst call, Dabur stated that while inflation started to wane at the end of financial year 2023, pockets of stress remained. It also faced a demand slowdown in its key markets due to hike in interest rates by central banks to tame inflation.

Volume growth for the quarter also stood at 1 percent for Dabur.

Shares of Dabur are trading 0.6 percent lower at Rs 514.80.