DABUR - Swing Trade Analysis

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

Swing Trade Rating: 4.0

📊 Analysis Summary

DABUR presents a technically favorable setup for swing trading, supported by bullish indicators and price action above key moving averages. While its fundamentals are solid, the valuation is rich and recent earnings have dipped. Nonetheless, the stock shows signs of short-term momentum and could offer a moderate swing opportunity with defined risk levels.

🔍 Technical Indicators

RSI (59.2): Bullish — approaching overbought, but still in a tradable zone.

MACD (+7.31): Positive — confirms upward momentum.

Price vs DMA

Current Price (₹518) is above both 50 DMA (₹501) and 200 DMA (₹512) — bullish crossover.

Volume: Slightly above average — confirms active participation.

📈 Fundamental Snapshot

P/E (53.0) vs Industry PE (59.2): Slightly undervalued relative to peers.

PEG Ratio (-40.5): Negative — indicates earnings contraction or unreliable growth metrics.

ROE (16.8%) & ROCE (20.2%): Strong — efficient use of capital.

EPS (₹9.97) vs Price (₹518): Valuation is stretched.

Qtr Profit Growth (-8.35%): Weak — recent dip in profitability.

FII Holding ↓, DII Holding ↑: Mixed institutional sentiment.

Debt to Equity (0.09): Very low — strong balance sheet.

Dividend Yield (1.54%): Decent — adds cushion to holding.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹510–₹515 range on minor pullback.

Confirm entry with RSI holding above 55 and MACD remaining positive.

Look for price stability above 200 DMA (₹512) with volume support.

🚪 Exit Strategy (If Already Holding)

Exit near ₹540–₹550, where short-term resistance lies.

If price drops below ₹500, consider stop-loss at ₹490 to manage risk.

⚖️ Final Verdict

DABUR is a technically strong, fundamentally stable stock with short-term upside potential. While earnings softness and high valuation warrant caution, the current momentum supports a moderate swing trade opportunity.

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