⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DABUR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | DABUR | Market Cap | 80,047 Cr. | Current Price | 451 ₹ | High / Low | 577 ₹ |
| Stock P/E | 54.9 | Book Value | 41.0 ₹ | Dividend Yield | 1.77 % | ROCE | 24.6 % |
| ROE | 19.6 % | Face Value | 1.00 ₹ | DMA 50 | 496 ₹ | DMA 200 | 507 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 1.00 % | PAT Qtr | 451 Cr. | PAT Prev Qtr | 349 Cr. |
| RSI | 30.1 | MACD | -15.3 | Volume | 26,42,886 | Avg Vol 1Wk | 20,31,541 |
| Low price | 420 ₹ | High price | 577 ₹ | PEG Ratio | -80.8 | Debt to equity | 0.07 |
| 52w Index | 19.8 % | Qtr Profit Var | 7.93 % | EPS | 8.15 ₹ | Industry PE | 43.1 |
📊 Core Financials
- Revenue Growth: PAT improved (₹451 Cr vs ₹349 Cr), showing healthy growth
- Profit Margins: EPS ₹8.15, moderate profitability
- Debt Ratio: Low leverage (Debt-to-Equity 0.07)
- Cash Flows: Stable, supported by consistent consumer demand
- Return Metrics: ROCE 24.6%, ROE 19.6% — strong efficiency
💹 Valuation Indicators
- P/E Ratio: 54.9 (well above industry PE of 43.1, overvalued)
- P/B Ratio: ~11.0 (premium valuation)
- PEG Ratio: -80.8 (negative, weak growth outlook)
- Intrinsic Value: Current price ₹451 is near support (₹420), offering cautious entry
🏢 Business Model & Competitive Advantage
- Leading FMCG company with diversified portfolio in healthcare, personal care, and food
- Strong brand recognition and distribution network across India
- Low debt enhances financial resilience
- Dividend yield of 1.77% adds shareholder value
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹430–₹460 range (near support levels)
- Long-Term Holding: Attractive due to strong brand and consistent demand
- Risk: Premium valuation and negative PEG ratio may limit short-term upside
✅ Positive
- Strong ROE and ROCE indicate efficient capital use
- Low debt ensures financial stability
- Dividend yield of 1.77% provides steady returns
⚠️ Limitation
- P/E ratio significantly higher than industry average
- Negative PEG ratio indicates poor growth prospects
- Stock trading below DMA 50 & DMA 200, showing weak momentum
📰 Company Negative News
- Decline in FII holdings (-0.83%) shows reduced foreign investor confidence
🌟 Company Positive News
- DII holdings increased (+1.00%), showing strong domestic investor support
- PAT improved from ₹349 Cr to ₹451 Cr
🏦 Industry
- FMCG sector with steady demand and defensive characteristics
- Industry PE at 43.1, DABUR trades above this, showing premium valuation
- Sector growth supported by rising consumer spending and rural penetration
🔎 Conclusion
- DABUR offers stability with strong brand presence and low debt
- Valuation is expensive compared to industry peers
- Entry near ₹430–₹460 is favorable for long-term conservative investors
- Best suited for portfolios seeking FMCG exposure with moderate risk tolerance