⚠ 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 - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | DABUR | Market Cap | 88,791 Cr. | Current Price | 500 ₹ | High / Low | 577 ₹ |
| Stock P/E | 60.9 | Book Value | 41.0 ₹ | Dividend Yield | 1.60 % | ROCE | 24.6 % |
| ROE | 19.6 % | Face Value | 1.00 ₹ | DMA 50 | 510 ₹ | DMA 200 | 511 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 1.00 % | PAT Qtr | 451 Cr. | PAT Prev Qtr | 349 Cr. |
| RSI | 41.7 | MACD | -1.35 | Volume | 19,00,229 | Avg Vol 1Wk | 22,65,040 |
| Low price | 420 ₹ | High price | 577 ₹ | PEG Ratio | -89.6 | Debt to equity | 0.07 |
| 52w Index | 51.2 % | Qtr Profit Var | 7.93 % | EPS | 8.15 ₹ | Industry PE | 46.6 |
📊 Dabur shows strong fundamentals and steady profit growth but faces high valuation and weak short-term technical momentum. It is a fair candidate for swing trading with cautious positioning near support levels.
✅ Optimal Entry Price: 490–495 ₹ (near support zone below 50 DMA)
🚪 Exit Strategy if Holding: Consider exiting near 520–530 ₹ (close to 200 DMA resistance) or if RSI moves above 55.
Positive
- 💡 Strong ROCE (24.6%) and ROE (19.6%) indicate efficient capital usage.
- 📈 PAT improved from 349 Cr. to 451 Cr., showing sequential growth.
- 🏦 Low debt-to-equity ratio (0.07) ensures financial stability.
- 💰 Dividend yield of 1.60% adds investor confidence.
- 📊 Large market cap of 88,791 Cr. ensures liquidity and stability.
Limitation
- ⚠️ Very high P/E (60.9) compared to industry average (46.6), suggesting overvaluation.
- 📉 RSI at 41.7 and MACD (-1.35) indicate weak momentum.
- 🔻 PEG ratio (-89.6) suggests poor valuation relative to growth.
- 📊 Current price below both 50 DMA (510 ₹) and 200 DMA (511 ₹), showing technical weakness.
Company Negative News
- 📉 Decline in FII holdings (-0.83%) shows reduced foreign investor confidence.
- 📊 High valuation may limit upside potential in the short term.
Company Positive News
- 📈 Increase in DII holdings (+1.00%) reflects strong domestic institutional support.
- 📊 Quarterly profit variation (+7.93%) shows steady improvement.
Industry
- 🏭 Industry P/E at 46.6 is lower than Dabur’s 60.9, highlighting premium valuation.
- 📈 FMCG sector remains resilient, supported by consistent demand in healthcare, personal care, and food products.
Conclusion
🔎 Dabur is fundamentally strong but technically weak in the short term. Swing traders may enter near 490–495 ₹ and exit near 520–530 ₹. Monitoring RSI and MACD is crucial, as momentum indicators suggest limited upside unless a reversal occurs.