DABUR - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.1

📉 DABUR is currently in a reversing phase, with weakening momentum indicators and price action below key moving averages.

📊 Technical Overview

• Trend Status: Reversing — price has declined from ₹577 to ₹502, hovering near its recent low of ₹420.
• Moving Averages: Price is below both 50 DMA (₹508) and 200 DMA (₹513), confirming bearish sentiment.
• RSI (37.7): Near oversold territory, indicating weak momentum and potential for a technical bounce.
• MACD (-2.73): Negative crossover supports continued bearish pressure.
• Bollinger Bands: Price near lower band, suggesting volatility and possible short-term support.
• Volume: Above average (52.7L vs 30.1L), indicating active trading despite weakness.

📌 Entry & Exit Zones

• Support Zone: ₹490–₹500 — potential entry zone if reversal signals emerge.
• Resistance Zone: ₹515–₹530 — ideal for exit or partial profit booking.
• Breakout Level: ₹577 — crossing this could signal trend recovery.

✅ Positive

• Strong ROCE (24.6%) and ROE (19.6%) reflect efficient capital use.
• Low debt-to-equity ratio (0.07) supports financial stability.
• EPS of ₹8.04 and consistent dividend yield (1.59%).
• Positive DII holding change (+1.13%) shows domestic institutional confidence.

⚠️ Limitation

• Price trading below key moving averages with bearish MACD and weak RSI.
• High P/E (62.5) and extremely negative PEG ratio (-91.9) suggest valuation concerns.
• Quarterly PAT declined from ₹407 Cr to ₹349 Cr, indicating earnings pressure.

📰 Company Negative News

• Decline in FII holdings (-0.97%) may reflect foreign investor caution.

🌟 Company Positive News

• Stable fundamentals and strong return ratios.
• Domestic institutions increasing stake, signaling long-term confidence.

🏭 Industry

• Operates in FMCG and healthcare, a defensive sector with stable demand and brand loyalty.
• Industry P/E (51.8) is lower than the stock’s, indicating valuation premium.

🧾 Conclusion

• DABUR is technically weak in the short term with bearish indicators and declining price action.
• Entry near ₹490–₹500 only if reversal signs strengthen; watch for breakout above ₹577.
• Long-term investors may hold for fundamentals and yield; short-term traders should remain cautious.