DABUR - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.8
| Stock Code | DABUR | Market Cap | 75,136 Cr. | Current Price | 424 ₹ | High / Low | 577 ₹ |
| Stock P/E | 50.0 | Book Value | 42.4 ₹ | Dividend Yield | 1.95 % | ROCE | 25.1 % |
| ROE | 20.1 % | Face Value | 1.00 ₹ | DMA 50 | 443 ₹ | DMA 200 | 476 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.17 % | PAT Qtr | 296 Cr. | PAT Prev Qtr | 451 Cr. |
| RSI | 41.0 | MACD | -5.87 | Volume | 19,61,360 | Avg Vol 1Wk | 14,76,388 |
| Low price | 401 ₹ | High price | 577 ₹ | PEG Ratio | 17.8 | Debt to equity | 0.08 |
| 52w Index | 12.8 % | Qtr Profit Var | 18.0 % | EPS | 8.41 ₹ | Industry PE | 40.5 |
Dabur shows strong fundamentals with healthy ROCE and ROE, low debt-to-equity, and a decent dividend yield. However, the high P/E ratio compared to industry average, negative PEG ratio, declining profits, and trading below its 200 DMA raise caution. Technically, RSI at 41.0 and negative MACD suggest weak momentum. It is a cautious candidate for swing trading with limited upside potential.
💡 Optimal Entry Price: Around 415–425 ₹ (near support levels close to current price).
📈 Exit Strategy: If already holding, consider booking profits near 450–460 ₹ (short-term resistance) or exit if price falls below 410 ₹ (support zone).
✅ Positive
- 📈 Strong ROCE at 25.1% and ROE at 20.1% show efficient capital use.
- 💰 Low debt-to-equity ratio of 0.08 ensures financial stability.
- 📊 Dividend yield of 1.95% adds investor appeal.
- 📉 Large market cap of 75,136 Cr. provides stability.
⚠️ Limitation
- 📉 High P/E ratio of 50 compared to industry average of 40.5.
- 📉 Elevated PEG ratio at 17.8 suggests poor valuation relative to growth.
- 📉 Trading below DMA 200, indicating bearish longer-term trend.
📰 Company Negative News
- 📉 Decline in FII holding (-0.07%) shows reduced foreign investor confidence.
- 📉 PAT dropped from 451 Cr. to 296 Cr. in the latest quarter.
🌟 Company Positive News
- 📈 Increase in DII holding (+0.17%) signals domestic institutional support.
- 📊 Quarterly profit variation (+18%) shows some operational improvement despite overall decline.
🏭 Industry
- 📊 Industry P/E at 40.5, lower than Dabur’s 50, suggesting sector is moderately valued while the stock is expensive.
- 📈 FMCG industry remains resilient with steady demand for consumer products.
📌 Conclusion
Dabur presents a cautious swing trade opportunity. Strong fundamentals and dividend yield are positives, but high valuation, declining profits, and weak technicals limit upside. Entry is favorable near 415–425 ₹, with profit booking advised around 450–460 ₹. Risk management is essential due to valuation premium and earnings pressure.