DABUR - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.7
| Stock Code | DABUR | Market Cap | 76,380 Cr. | Current Price | 430 ₹ | High / Low | 577 ₹ |
| Stock P/E | 52.4 | Book Value | 41.0 ₹ | Dividend Yield | 1.86 % | ROCE | 24.6 % |
| ROE | 19.6 % | Face Value | 1.00 ₹ | DMA 50 | 493 ₹ | DMA 200 | 506 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 1.00 % | PAT Qtr | 451 Cr. | PAT Prev Qtr | 349 Cr. |
| RSI | 24.1 | MACD | -17.4 | Volume | 32,95,075 | Avg Vol 1Wk | 23,29,133 |
| Low price | 420 ₹ | High price | 577 ₹ | PEG Ratio | -77.0 | Debt to equity | 0.07 |
| 52w Index | 6.47 % | Qtr Profit Var | 7.93 % | EPS | 8.15 ₹ | Industry PE | 41.8 |
📊 Dabur (DABUR) has strong brand fundamentals but currently shows weak technicals and stretched valuations. The RSI at 24.1 indicates oversold conditions, while MACD is negative and price trades below both 50 DMA (493) and 200 DMA (506). High P/E (52.4) compared to industry average (41.8) suggests overvaluation, making it a risky swing trade candidate.
💡 Optimal Entry Price: Around ₹425–435, near strong support levels.
📈 Exit Strategy (if already holding): Consider exiting near ₹490–500 if recovery occurs, or cut losses if price falls below ₹420 decisively.
Positive
- Strong ROCE (24.6%) and ROE (19.6%) indicate efficient capital use.
- Dividend yield of 1.86% provides steady income.
- Low debt-to-equity ratio (0.07) ensures financial stability.
- Quarterly PAT improved from ₹349 Cr. to ₹451 Cr.
Limitation
- High P/E (52.4) compared to industry average (41.8), suggesting premium valuation.
- PEG ratio (-77.0) indicates poor growth-adjusted valuation.
- Price trading below both 50 DMA and 200 DMA, confirming bearish trend.
- EPS of ₹8.15 is modest relative to valuation.
Company Negative News
- FII holdings decreased (-0.83%), showing reduced foreign investor confidence.
- Technical weakness with RSI oversold and MACD negative.
Company Positive News
- DII holdings increased (+1.00%), reflecting strong domestic institutional support.
- Quarterly profit variation (+7.93%) shows sequential improvement.
Industry
- Industry P/E at 41.8 is lower than Dabur’s, suggesting the stock trades at a premium.
- FMCG sector remains defensive and resilient, driven by consumer demand and brand strength.
Conclusion
⚖️ Dabur is fundamentally strong but technically weak, with high valuation and oversold momentum. Swing traders may cautiously enter near support (~₹425–435) and exit near resistance (~₹490–500). Conservative traders should wait for stronger technical signals before entering.