DABUR - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 2.9

📊 Technical Analysis

• Chart Patterns: Price (494 ₹) is below both 50 DMA (508 ₹) and 200 DMA (512 ₹), indicating weakness.
• Moving Averages: Bearish bias as price trades under short-term and long-term averages.
• RSI: 33.8 → oversold territory, suggesting possible short-term bounce but weak momentum overall.
• MACD: -5.02 → bearish crossover, confirming downward pressure.
• Bollinger Bands: Price near lower band, indicating oversold conditions and potential rebound.
• Volume Trends: Current volume (6.93 Lakh) is below 1-week average (9.55 Lakh), showing reduced participation and weak buying interest.

📈 Momentum & Signals

• Short-term Momentum: Bearish bias with oversold RSI suggesting potential technical bounce.
• Support Zones: 480 ₹ (near-term), 450 ₹ (strong support), 420 ₹ (52-week low).
• Resistance Zones: 508 ₹ (50 DMA), 512 ₹ (200 DMA), 550 ₹ (psychological resistance).
• Optimal Entry: 480–450 ₹ range if RSI remains oversold.
• Optimal Exit: 508–550 ₹ range unless breakout above 577 ₹.
• Trend Status: Stock is trending downward with oversold signals; possible consolidation near support levels.

✅ Positive

• Strong ROCE (24.6%) and ROE (19.6%) indicate efficient capital use.
• Dividend yield at 1.62% provides shareholder returns.
• DII holdings increased (+1.13%), showing domestic institutional confidence.
• Low debt-to-equity ratio (0.07) indicates financial stability.

⚠️ Limitation

• Price trading below both 50 DMA and 200 DMA, showing weakness.
• High P/E (61.5) compared to industry PE (49.7), indicating stretched valuation.
• PEG ratio (-90.5) suggests poor growth prospects relative to valuation.

📉 Company Negative News

• Quarterly PAT declined from 407 Cr. to 349 Cr.
• FII holdings decreased (-0.97%), showing reduced foreign investor confidence.

📈 Company Positive News

• DII holdings increased, balancing FII outflows.
• Dividend yield supports investor sentiment.
• Quarterly profit variation improved slightly (+5.91%).

🏭 Industry

• Industry PE at 49.7, lower than company PE (61.5), suggesting Dabur trades at a premium.
• FMCG sector remains resilient with steady demand outlook despite valuation pressures.

🔎 Conclusion

• Stock is in a downtrend with oversold RSI suggesting possible short-term bounce.
• Best entry near 480–450 ₹; exit near 508–550 ₹ unless breakout above 577 ₹.
• Long-term investors should monitor earnings growth and valuation risks before committing.