⚠ 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: 4.0
| Stock Code | DABUR | Market Cap | 89,013 Cr. | Current Price | 502 ₹ | High / Low | 577 ₹ |
| Stock P/E | 61.1 | Book Value | 41.0 ₹ | Dividend Yield | 1.59 % | ROCE | 24.6 % |
| ROE | 19.6 % | Face Value | 1.00 ₹ | DMA 50 | 510 ₹ | DMA 200 | 512 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 1.00 % | PAT Qtr | 451 Cr. | PAT Prev Qtr | 349 Cr. |
| RSI | 42.3 | MACD | 0.40 | Volume | 14,21,440 | Avg Vol 1Wk | 21,33,373 |
| Low price | 420 ₹ | High price | 577 ₹ | PEG Ratio | -89.8 | Debt to equity | 0.07 |
| 52w Index | 52.3 % | Qtr Profit Var | 7.93 % | EPS | 8.15 ₹ | Industry PE | 46.8 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT increased from 349 Cr. to 451 Cr. (+7.93%), showing steady growth momentum.
- Profit Margins: ROE at 19.6% and ROCE at 24.6% reflect strong efficiency and profitability.
- Debt Ratios: Debt-to-equity at 0.07 highlights a debt-light balance sheet.
- Cash Flows: Dividend yield of 1.59% provides moderate shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 61.1 vs Industry PE of 46.8, indicating premium valuation.
- P/B Ratio: Current Price 502 ₹ / Book Value 41 ₹ ≈ 12.2, showing expensive pricing relative to book value.
- PEG Ratio: -89.8, reflecting weak or negative growth expectations.
- Intrinsic Value: Estimated fair value around 470–490 ₹, making current price slightly above fair zone.
🏢 Business Model & Competitive Advantage
- Dabur is a leading FMCG company with strong presence in healthcare, personal care, and food products.
- Competitive advantage lies in brand heritage, diversified portfolio, and extensive distribution network.
- Focus on Ayurveda and natural products provides differentiation in a competitive FMCG market.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 470–490 ₹, closer to intrinsic value and near support levels.
- Long-Term Holding: Strong fundamentals, low debt, and brand strength make it suitable for long-term investors, though valuation is stretched.
✅ Positive
- Strong ROE (19.6%) and ROCE (24.6%) reflect efficient capital use.
- Debt-light balance sheet ensures financial stability.
- DII holdings increased (+1.00%), showing domestic institutional support.
⚠️ Limitation
- High P/E ratio compared to industry average, indicating overvaluation.
- PEG ratio negative, reflecting poor growth visibility.
- Stock trading near DMA 50 and DMA 200, showing weak momentum.
📉 Company Negative News
- Decline in FII holding (-0.83%) indicates reduced foreign investor confidence.
- Premium valuation multiples make the stock vulnerable to correction.
📈 Company Positive News
- DII holdings increased (+1.00%), showing strong domestic support.
- Quarterly PAT growth (+7.93%) reinforces operational strength.
🏭 Industry
- FMCG industry PE at 46.8, lower than Dabur’s 61.1, suggesting relative overvaluation.
- Industry growth supported by rising demand for health, wellness, and natural products.
🔎 Conclusion
- Dabur is a fundamentally strong FMCG company with brand leadership and low debt.
- Valuation is stretched compared to industry peers, and growth visibility is limited.
- Best suited for long-term investors with cautious entry around 470–490 ₹; accumulation strategy recommended for exposure to India’s FMCG and Ayurveda-driven growth story.
I can also expand on Ayurveda and wellness-driven demand trends that could further strengthen Dabur’s long-term growth outlook.