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DABUR - Swing Trade Analysis with AI Signals

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Rating: 3.9

Last Updated Time : 05 May 26, 03:11 pm

📊 Swing Trade Rating: 3.9

Stock Code DABUR Market Cap 78,308 Cr. Current Price 442 ₹ High / Low 577 ₹
Stock P/E 53.7 Book Value 41.0 ₹ Dividend Yield 1.81 % ROCE 24.6 %
ROE 19.6 % Face Value 1.00 ₹ DMA 50 457 ₹ DMA 200 490 ₹
Chg in FII Hold -0.07 % Chg in DII Hold 0.17 % PAT Qtr 451 Cr. PAT Prev Qtr 349 Cr.
RSI 47.1 MACD 0.20 Volume 15,03,529 Avg Vol 1Wk 9,77,008
Low price 401 ₹ High price 577 ₹ PEG Ratio -79.0 Debt to equity 0.07
52w Index 23.0 % Qtr Profit Var 7.93 % EPS 8.15 ₹ Industry PE 42.5

Analysis: Dabur (DABUR) shows a mixed outlook for swing trading. Current price (442 ₹) is below both DMA 50 (457 ₹) and DMA 200 (490 ₹), indicating weak technical momentum. RSI at 47.1 suggests neutral to slightly oversold conditions, while MACD (0.20) shows minimal bullish strength. Fundamentals are decent with ROCE (24.6%) and ROE (19.6%), supported by low debt-to-equity (0.07). Quarterly PAT improved (451 Cr. vs 349 Cr.), with profit variation of 7.93% showing resilience. However, valuation is stretched with P/E of 53.7 compared to industry PE of 42.5, and PEG ratio (-79.0) highlights growth concerns despite strong EPS (8.15 ₹).

Optimal Entry Price: Around 430–440 ₹ (near support zone).

Exit Strategy if Holding: Consider booking profits near 465–480 ₹ unless momentum sustains above 490 ₹ resistance.

✅ Positive

  • Strong ROCE (24.6%) and ROE (19.6%).
  • Low debt-to-equity ratio (0.07) ensures financial stability.
  • Quarterly PAT growth (451 Cr. vs 349 Cr.) shows improving performance.
  • DII holdings increased (+0.17%), reflecting domestic investor confidence.

⚠️ Limitation

  • High P/E (53.7) compared to industry average (42.5).
  • FII holdings decreased (-0.07%), showing reduced foreign interest.
  • Stock trading below DMA 50 and DMA 200 indicates weak technicals.
  • PEG ratio (-79.0) suggests poor growth prospects.

📰 Company Negative News

  • No major negative news reported, but premium valuation and weak technicals are concerns.

🌟 Company Positive News

  • Quarterly profit growth supports investor sentiment.
  • Strong efficiency metrics (ROCE and ROE).
  • Domestic institutional investors increased their stake.

🏭 Industry

  • Industry P/E at 42.5 suggests Dabur trades at a premium.
  • FMCG sector remains resilient with steady demand growth.

📌 Conclusion

Dabur is a moderate candidate for swing trading. Entry around 430–440 ₹ offers a safer risk-reward setup, while exit near 465–480 ₹ is advisable unless momentum sustains above 490 ₹. Strong fundamentals and profit growth are positives, but premium valuation and weak technicals warrant cautious optimism.

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