DABUR - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.0

📊 DABUR shows moderate potential for swing trading but faces weak technical momentum. Current price (₹494) is below both 50 DMA (₹508) and 200 DMA (₹512), indicating bearish sentiment. RSI at 33.8 suggests oversold conditions, while MACD (-5.02) confirms negative momentum. Valuation is stretched with a P/E of 61.5 compared to industry average of 49.7. Optimal entry would be near ₹480–₹490 if support holds. If already holding, exit near ₹510–₹520 resistance unless momentum improves.

✅ Positive

• 📈 Strong ROCE (24.6%) and ROE (19.6%) show efficient capital use
• 💰 Dividend yield at 1.62% adds investor appeal
• 📉 Low debt-to-equity (0.07) ensures financial stability
• 📊 DII holding increased (+1.13%), showing domestic investor confidence

⚠️ Limitation

• 📉 Current price below both 50 DMA and 200 DMA
• 📊 RSI and MACD show weak momentum
• 📉 High P/E ratio (61.5 vs industry 49.7)
• ⚠️ PEG ratio negative (-90.5), limiting growth valuation

🚨 Company Negative News

• 📉 Quarterly PAT declined from ₹407 Cr. to ₹349 Cr.
• ⚠️ EPS at ₹8.04 remains modest compared to valuation
• 📉 FII holding decreased (-0.97%)

🌟 Company Positive News

• 📈 Dividend yield and strong ROCE/ROE support fundamentals
• 📊 DII holding increased (+1.13%)

🏭 Industry

• 📊 Industry P/E at 49.7, lower than company’s 61.5
• 📈 FMCG sector has steady demand outlook despite valuation pressures

📌 Conclusion

⚖️ DABUR is a fair swing trade candidate with strong fundamentals but weak technical momentum and stretched valuations. Entry is favorable near ₹480–₹490 on dips. For existing holders, exit near ₹510–₹520 resistance is advisable unless RSI and MACD show stronger recovery.

I can also outline DABUR’s short-term support and resistance zones so you can track entry and exit levels more clearly.