Hello and welcome back to one more article wherein we would analyze Dabur share price in the best possible way through Business, Fundamental and Technical analysis.
So, today’s stock is Dabur India Ltd.
Now, let’s us see the business features of Dabur India Ltd.
Table of Contents
BUSINESS ANALYSIS
Dabur is an Indian multinational consumer goods company and is also one of the leading FMCG companies in India.
It manufactures Ayurvedic medicine and natural consumer products. The company is also a world leader in Ayurveda which a portfolio of over 250 Herbal/Ayurvedic products.
They operate consumer products categories like Hair care, Oral care, Health care, Skin care, Home care, and Foods.
Dabur share has mainly three business units which are Consumer care division (CCD), International business division (IBD) and Consumer health division (CHD).
Across the globe, Dabur has 20 manufacturing facilities.
Now coming to the financials of the company
FINANCIAL ANALYSIS
The Market Capitalization of Dabur is Rs1,04,860 Cr.
The price to earnings ratio of the Dabur India share is 61.9 which is greater than the industry price to earnings ratio of 42.6 .
The value of P/E is quite greater but that doesn’t mean the stock is underperforming and not expanding.
The return on capital employed is 27.3% which shows the excellent performance and bright future of the Dabur share price.
The return on equity is 23.7% which is pretty awesome, and which definitely helps us in understanding the returns an investor will receive when certain amount will be invested by them.
The company has a debt to equity ratio of 0.06 which indicates the company is almost debt free.
Based on market capitalization, Dabur India Ltd is at 1st position.
The company is also paying a healthy dividend of 39.98%.
Debtor days have improved from 30.46 to 21.44 days which shows their path towards success.
From the last 4 quarters the company has shown excellent results with a rapid change in the sales amount.
In the last quarter of March 2021, the expenses of the company have reduced, which indicates that the company is determined to make more profit.
The net profit is increased from Rs1445 Cr in March 2020 to Rs1693 Cr in March 2021.
In the year 2021,the reserves have increased to Rs7487 Cr from Rs 6429 Cr in the year 2020.
In the year March 2021,the Dabur share price had a net cash flow of Rs 95 Cr which the company can use for business expansion.
Promoters have a holding of 67.38% till March 2021.
The Fll’s have a 19.77% holding.
The Dll’s have a 5.34% holding while only 7.51% is with the public.
Promoter holding is very good and hence this is a great sign of future growth.
This is a brief overview of the financials of the Dabur India Ltd which showcases the dominance in their respective market.
Technicals of the share is quite interesting so let’s deep dive into it for understanding it in a better way.
TECHNICAL ANALYSIS
If we give a closer look on the chart in a daily timeframe, we can see that there is a cup and handle pattern.
A breakout is achieved, and the resistance levels are again tested.
Looking at the current scenario and the superb financials we feel that the resistance would become support levels and a great momentum could be seen.
A target of approximately 10% can be seen to be achieved.
The Dabur share price on 14th July 2021 is Rs. 584 which would definitely vary in the upcoming future.
The high price of the stock in the last 1 year was Rs 605.
DISCLAIMER:
This analysis is only for study purpose. Buying or selling of the share shouldn’t be dependent on this analysis. Chart patterns will see a change as there would be a definite variation in the prices. This platform is just for sharing the stock information.
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