DABUR - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.0

📈 Positive

• 📊 Strong return metrics — ROCE at 24.6% and ROE at 19.6% reflect efficient capital deployment.
• 💰 Low debt-to-equity ratio of 0.07 ensures financial stability and conservative leverage.
• 💸 Dividend yield of 1.64% offers steady passive income for long-term investors.
• 📈 DII holding increased by 1.13%, indicating rising domestic institutional confidence.
• 📈 EPS of ₹8.04 supports consistent earnings visibility.

⚠️ Limitation

• 📉 High P/E of 60.8 vs industry average of 52.1 suggests premium valuation.
• 📉 Negative PEG ratio (-89.4) implies valuation is not supported by growth trajectory.
• 📉 Quarterly PAT declined from ₹407 Cr. to ₹349 Cr., showing margin pressure.
• 📉 MACD at -1.57 and RSI at 46.8 reflect neutral-to-weak technical momentum.
• 📉 Trading below DMA50 and DMA200 (₹509 and ₹513), confirming short-term bearish trend.

📰 Company Negative News

• 📉 FII holding declined by 0.97%, indicating reduced foreign investor interest.
• 📉 Volume below 1-week average may reflect short-term cooling in investor sentiment.

🌟 Company Positive News

• 📈 Quarterly profit variation of 5.91% shows resilience despite sectoral headwinds.
• 📈 Trading near 52-week low (₹420), offering potential value entry point.

🧴 Industry

• 🧴 DABUR operates in the FMCG sector, with a strong portfolio in health care, personal care, and food products.
• 📊 Industry P/E of 52.1 reflects premium valuations for consumer staples with steady cash flows and brand loyalty.

🧭 Conclusion

• 📌 Suggested entry zone: ₹470–₹485, near support and below DMA levels for better margin of safety.
• 🕰️ Long-term holding favorable due to strong brand equity, consistent dividends, and sectoral stability.
• ⚖️ Monitor valuation multiples and foreign investor sentiment before aggressive accumulation.