DABUR - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | DABUR | Market Cap | 80,047 Cr. | Current Price | 451 ₹ | High / Low | 577 ₹ |
| Stock P/E | 54.9 | Book Value | 41.0 ₹ | Dividend Yield | 1.77 % | ROCE | 24.6 % |
| ROE | 19.6 % | Face Value | 1.00 ₹ | DMA 50 | 496 ₹ | DMA 200 | 507 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 1.00 % | PAT Qtr | 451 Cr. | PAT Prev Qtr | 349 Cr. |
| RSI | 30.1 | MACD | -15.3 | Volume | 26,42,886 | Avg Vol 1Wk | 20,31,541 |
| Low price | 420 ₹ | High price | 577 ₹ | PEG Ratio | -80.8 | Debt to equity | 0.07 |
| 52w Index | 19.8 % | Qtr Profit Var | 7.93 % | EPS | 8.15 ₹ | Industry PE | 43.1 |
📊 Chart & Trend Analysis: DABUR is trading at ₹451, below both its 50 DMA (₹496) and 200 DMA (₹507), indicating bearish momentum. RSI at 30.1 shows the stock is nearing oversold territory. MACD at -15.3 confirms negative momentum. Bollinger Bands suggest price is near the lower band, with support around ₹420.
📈 Momentum Signals: Current volume (26.42 lakh) is higher than the 1-week average (20.31 lakh), showing strong participation. However, weak RSI and negative MACD reinforce bearish bias, suggesting selling pressure dominates.
💡 Entry Zone: Optimal entry around ₹430–450 (near support).
🚪 Exit Zone: Resistance seen at ₹496 (50 DMA) and ₹507 (200 DMA). Profit booking advised near these levels.
🔎 Trend Status: The stock is currently consolidating with bearish bias. A breakout above ₹496 would indicate recovery momentum.
Positive
- Strong ROCE (24.6%) and ROE (19.6%) reflect efficient capital use.
- Low debt-to-equity ratio (0.07) ensures financial stability.
- Dividend yield of 1.77% adds investor appeal.
- PAT growth (₹451 Cr vs ₹349 Cr) shows operational improvement.
Limitation
- High P/E (54.9) compared to industry average (43.1) suggests overvaluation.
- Trading below both 50 DMA and 200 DMA highlights weak technical strength.
- PEG ratio (-80.8) indicates poor growth-to-valuation alignment.
Company Negative News
- Decline in FII holding (-0.83%) shows reduced foreign investor confidence.
Company Positive News
- DII holding increased (+1.00%), showing strong domestic institutional support.
- Quarterly profit variation (+7.93%) highlights resilience.
Industry
- Industry P/E at 43.1 is lower than DABUR’s P/E, suggesting peers may be more attractively valued.
- FMCG sector remains resilient, supported by demand in healthcare, nutrition, and personal care products.
Conclusion
⚖️ DABUR shows strong fundamentals (healthy ROE/ROCE, low debt, dividend yield) but weak technical momentum and high valuations weigh on performance. Short-term consolidation with bearish bias is evident. Entry near ₹430–450 offers margin of safety, while exits should be considered near ₹496–507. Long-term investors may hold for sector resilience, but traders should wait for confirmation above 50 DMA before aggressive buying.
Would you like me to extend this into a peer benchmarking overlay (e.g., comparing DABUR with HUL, Marico, and Emami) to highlight relative strength and sector rotation opportunities?