DABUR - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: Dabur India Ltd (DABUR) Fundamental Rating: 4.2

🧾 Core Financials Snapshot

Earnings Trend

EPS: ₹9.97 ➜ moderate profitability for an FMCG player

PAT fell from ₹516 Cr to ₹313 Cr ➜ QoQ decline of ~39% — needs monitoring

Return Metrics

ROE: 16.8%, ROCE: 20.2% ➜ strong return profile — efficient capital use

Debt Levels

Debt-to-equity: 0.09 ➜ very low leverage — conservative balance sheet

Dividend Yield

1.54% ➜ solid for long-term investors

🧠 Insight: Despite a dip in quarterly profits, Dabur remains fundamentally sound with low debt and strong return metrics.

💸 Valuation Checkpoint

Metric Value Interpretation

P/E Ratio 53.0 premium vs industry PE (59.2) — fairly priced

P/B Ratio ~8.51 (₹518 / ₹60.9) ➜ reflects brand value premium

PEG Ratio -40.5 negative PEG suggests potential data anomaly or earnings drop

📌 Verdict: High P/B and PEG anomalies caution short-term buyers — valuation built on strong branding and growth history.

🧴 Business Model & Competitive Advantage

Core Focus: Ayurvedic & natural health products, home & personal care, food supplements

Strengths

Heritage brand with pan-India distribution

Deep moat in ayurvedic health & nutrition

Challenges

Rising competition from Patanjali, HUL naturals

Volume pressure in rural demand cycles

📈 Investor Sentiment

FII ↓ 0.83% ➜ foreign sell-off could signal caution

DII ↑ 0.54% ➜ domestic confidence holding up

📉 Technical Indicators

RSI: 59.2 ➜ near neutral — slight upward bias

MACD: +7.31 ➜ momentum building, but not yet confirmed breakout

Price near DMA 50 & 200 ➜ tight range trading — wait for a directional move

✅ Suggested Entry Zone: ₹485–₹505 🕰️ Ideal to accumulate on dips — avoid chasing until breakout past ₹520 with volume confirmation.

📅 Long-Term Outlook

🧘 For patient investors

Focused on low-volatility FMCG exposure

Interested in dividend yield + brand strength

🔍 Track

Rural demand trends & inflation impact

Expansion into international health markets

New product pipelines (nutraceuticals, ayurveda)

Want to line it up against Marico or Emami to spot trends across Ayurvedic consumer brands? I’ve got data magic for that too.

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