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DABUR - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | DABUR | Market Cap | 88,720 Cr. | Current Price | 500 ₹ | High / Low | 577 ₹ |
| Stock P/E | 60.9 | Book Value | 41.0 ₹ | Dividend Yield | 1.59 % | ROCE | 24.6 % |
| ROE | 19.6 % | Face Value | 1.00 ₹ | DMA 50 | 510 ₹ | DMA 200 | 512 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 1.00 % | PAT Qtr | 451 Cr. | PAT Prev Qtr | 349 Cr. |
| RSI | 42.3 | MACD | 0.40 | Volume | 14,21,440 | Avg Vol 1Wk | 21,33,373 |
| Low price | 420 ₹ | High price | 577 ₹ | PEG Ratio | -89.5 | Debt to equity | 0.07 |
| 52w Index | 51.1 % | Qtr Profit Var | 7.93 % | EPS | 8.15 ₹ | Industry PE | 46.9 |
📊 Technical Analysis
- Chart Patterns: DABUR is trading at 500 ₹, below its recent high of 577 ₹, showing weakness after a rally. Price action suggests sideways consolidation with mild bearish undertones.
- Moving Averages: Current price is below both 50 DMA (510 ₹) and 200 DMA (512 ₹), confirming short-term and medium-term weakness.
- RSI: At 42.3, the stock is neutral, leaning toward oversold territory.
- MACD: Slightly positive (0.40), suggesting weak bullish crossover but limited strength.
- Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.
- Volume Trends: Current volume (14.21L) is lower than 1-week average (21.33L), showing reduced participation and lack of strong buying interest.
📈 Momentum & Signals
- Short-Term Momentum: Neutral to weak, with potential for consolidation breakout.
- Support Zones: 490–500 ₹ (near-term support), 470 ₹ (strong support), 420 ₹ (long-term support).
- Resistance Zones: 510–512 ₹ (DMA resistance), 540 ₹ (intermediate resistance), 577 ₹ (recent high).
- Optimal Entry: Around 490–500 ₹ if support holds.
- Optimal Exit: 540–560 ₹ range, unless breakout above 577 ₹ confirms reversal.
- Trend Status: Currently consolidating with bearish bias; reversal possible only if price sustains above 510–540 ₹.
✅ Positive
- Strong ROCE (24.6%) and ROE (19.6%) indicate efficient capital use.
- Dividend yield of 1.59% provides steady income support.
- DII holdings increased (+1.00%), showing domestic institutional support.
- PAT improved from 349 Cr. to 451 Cr., reflecting earnings growth.
⚠️ Limitation
- High P/E (60.9) compared to industry PE (46.9), suggesting overvaluation.
- PEG ratio (-89.5) indicates poor valuation relative to growth.
- Trading below both 50 DMA and 200 DMA confirms weak technical structure.
- EPS (8.15 ₹) is modest compared to peers.
📉 Company Negative News
- FII holdings declined (-0.83%), showing reduced foreign investor confidence.
- Stock has corrected from its peak of 577 ₹, showing resistance at higher levels.
📈 Company Positive News
- DII holdings increased (+1.00%), showing strong domestic support.
- PAT improved significantly from 349 Cr. to 451 Cr. in recent quarter.
- Dividend yield of 1.59% adds investor appeal.
🏭 Industry
- Industry P/E is 46.9, lower than DABUR’s 60.9, suggesting relative overvaluation.
- FMCG sector remains resilient, supported by consumer demand and brand strength.
📝 Conclusion
- DABUR is fundamentally strong but technically consolidating with bearish bias.
- Stock may see a relief rally if support near 490–500 ₹ holds and price sustains above 510–540 ₹.
- Best strategy: Accumulate cautiously near 490–500 ₹ with exit around 540–560 ₹ unless breakout above 577 ₹ confirms reversal.