DABUR - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials

Earnings & Profitability: EPS of ₹7.93 and PAT of ₹407 Cr this quarter (up from ₹251 Cr) reflect a solid rebound. ROCE at 24.6% and ROE at 19.6% are strong, showcasing efficient capital deployment.

Debt Profile: Debt-to-equity of 0.05 — virtually debt-free, which enhances financial resilience and supports dividend payouts.

Cash Flow: While not explicitly stated, Dabur’s consistent profitability and low leverage imply robust operating cash flows.

💰 Valuation Indicators

Metric Value Insight

P/E Ratio 67.6 Expensive vs. industry PE (52.8)

P/B Ratio ~12.8 High premium over book value

PEG Ratio -99.5 Negative PEG suggests growth concerns

Dividend Yield 1.49% Attractive for a consumer staple stock

Valuation is stretched, and the negative PEG ratio flags caution despite strong fundamentals.

🧴 Business Model & Competitive Advantage

Dabur India Ltd. is one of India’s oldest and most trusted FMCG companies, with strengths in

Ayurvedic and natural healthcare products

Personal care, home care, and packaged foods

Strong rural distribution and brand equity

Diversified portfolio with over 250 products across categories

Recent updates show Dabur’s Q1FY26 revenue rose 1.7% YoY to ₹3,404.6 Cr, and net profit increased 2.8% to ₹508.3 Cr

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. The company also won a legal battle against Patanjali over misleading ads, reinforcing its brand protection strategy

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📈 Technical & Sentiment Indicators

RSI: 53.5 – Neutral zone, suggesting balanced momentum.

MACD: 5.43 – Mild bullish crossover.

Volume Surge – Above weekly average, indicating rising interest.

DMA 50 & 200: Price is above both, signaling medium-term strength.

Brokerage views are mixed: Nomura has a ₹575 target, while Morgan Stanley remains underweight at ₹396

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💡 Investment Strategy

🔽 Entry Zone

Ideal Buy Range: ₹510–₹525, near DMA 200 and technical support.

Current Price ₹536: Slightly above ideal entry, still reasonable for accumulation.

🕰️ Long-Term Holding

Hold or Accumulate on Dips: Strong brand, low debt, and resilient business model make Dabur a reliable long-term compounder.

Watch Growth & Valuation: Elevated P/E and PEG suggest limited short-term upside unless earnings accelerate.

You can explore Dabur’s full financial overview and analyst sentiment or check Angel One’s live update and ROE breakdown for deeper insights. Let me know if you'd like a peer comparison with Marico or Emami.

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