DABUR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | DABUR | Market Cap | 78,308 Cr. | Current Price | 442 ₹ | High / Low | 577 ₹ |
| Stock P/E | 53.7 | Book Value | 41.0 ₹ | Dividend Yield | 1.81 % | ROCE | 24.6 % |
| ROE | 19.6 % | Face Value | 1.00 ₹ | DMA 50 | 457 ₹ | DMA 200 | 490 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.17 % | PAT Qtr | 451 Cr. | PAT Prev Qtr | 349 Cr. |
| RSI | 47.1 | MACD | 0.20 | Volume | 15,03,529 | Avg Vol 1Wk | 9,77,008 |
| Low price | 401 ₹ | High price | 577 ₹ | PEG Ratio | -79.0 | Debt to equity | 0.07 |
| 52w Index | 23.0 % | Qtr Profit Var | 7.93 % | EPS | 8.15 ₹ | Industry PE | 42.5 |
📊 Dabur (DABUR) shows strong fundamentals with ROE (19.6%) and ROCE (24.6%), supported by low debt-to-equity (0.07). EPS of ₹8.15 provides earnings visibility, and dividend yield of 1.81% adds shareholder value. Quarterly PAT improved (451 Cr vs 349 Cr, +7.93%), reflecting operational strength. However, valuation is stretched with P/E (53.7) compared to industry average (42.5), while PEG ratio (-79.0) signals poor growth-adjusted value. Technicals remain weak with RSI (47.1) and price trading below both 50 DMA (457 ₹) and 200 DMA (490 ₹), indicating bearish momentum.
🎯 Entry Zone: 430 ₹ – 445 ₹ (near support levels)
📌 Long-Term Holding: Suitable for 2–3 year horizon. Strong fundamentals justify holding, but valuations and weak technicals warrant cautious accumulation. Upside potential exists toward 500–520 ₹ if earnings growth sustains.
Positive
- Strong ROE (19.6%) and ROCE (24.6%) highlight efficiency.
- Low debt-to-equity (0.07) ensures financial stability.
- Dividend yield of 1.81% supports investor returns.
- Quarterly PAT growth (+7.93%) shows operational improvement.
Limitation
- High P/E (53.7) compared to industry average (42.5).
- Negative PEG ratio (-79.0) indicates poor growth-adjusted valuation.
- Weak technicals with RSI below 50 and price under DMA levels.
- FII holdings declined (-0.07%), showing reduced foreign investor confidence.
Company Negative News
- No major negative news reported; valuation and technical weakness remain concerns.
Company Positive News
- Quarterly PAT growth (451 Cr vs 349 Cr) reflects earnings strength.
- Dividend yield supports investor sentiment.
- DII holdings increased (+0.17%), showing domestic institutional support.
Industry
- Industry P/E (42.5) is lower than Dabur’s P/E (53.7), suggesting premium valuation.
- FMCG sector remains resilient, supported by steady demand for healthcare and consumer products.
Conclusion
⚠️ Dabur is fundamentally strong with efficient capital use and low debt. Entry around 430–445 ₹ offers favorable risk-reward. Long-term holding is justified with cautious accumulation, though valuations and weak technicals limit compounding potential. Upside toward 500–520 ₹ possible if earnings growth sustains.
This structured HTML report captures Dabur’s strong fundamentals alongside its valuation risks and technical weakness. If you’d like, I can extend this into a peer benchmarking overlay against other FMCG players like HUL or Marico to highlight relative positioning. Would you like me to prepare that next?