DABUR trade ideas
DABUR : Added on to the existing holdingPros:
🌱 Rural Market Focus: Dabur's significant focus on the rural market, which accounts for 40% of their revenues, presents a promising opportunity for long-term growth. As rural demand is expected to pick up in the next few quarters due to better monsoons and improved agricultural produce, Dabur's strong presence in these areas could lead to substantial gains.
🌍 International Expansion: With international business contributing 25% to their revenues, Dabur has ample room for growth through international expansion. Despite currency depreciation posing a challenge, Dabur's commitment to expanding its global footprint signifies its potential to capture market share in diverse geographical regions.
💹 Margin Expansion and Cost Management: Dabur's ability to maintain gross margin expansion and operating margin expansion through effective cost management, despite inflationary pressures on raw materials, showcases the company's resilience and adaptability. This margin expansion could positively impact profitability in the long run.
🛠️ Product Innovation: Dabur's focus on innovation, particularly in the home and personal care segment, positions it as a market leader in providing innovative and high-quality products to consumers. This commitment to innovation not only enhances brand loyalty but also drives revenue growth through the introduction of new offerings.
📉 Despite the reduction in stake by FIIs over the past few quarters, DIIs and institutions have consistently increased their positions. Simultaneously, retailers have been reducing their stake. This pattern indicates a flow of shares from weaker to stronger hands, instilling confidence in the scrip.
Cons:
📉 Sluggish Demand Trends: Dabur continues to face sluggish demand trends, particularly in staples, which may hinder immediate revenue growth. The delay in rural demand pickup and uncertainty surrounding volume growth in the near term pose challenges to achieving desired revenue targets.
🥊 Competitive Pressure: Intense competition within the FMCG sector, coupled with pricing pressures and input cost inflation, poses a challenge to Dabur's market positioning and pricing strategies. The need to balance margin growth with volume growth amid competitive pressures may require careful strategic planning.
Trading Strategy:
📊 I have added to the existing position, bringing the total holding to 2.5% of the current capital. My target is to achieve a move of approximately 18% to the nearest key inflection level. However, I am also cognizant of the downside risk, which stands at about 7%.
📢📢📢 If my perspective changes or if I gather additional fundamental data that influences my views, I will provide updates accordingly.
Thank you for following along with this journey, and I remain committed to sharing insights and updates as my trading strategy evolves. As always, please feel free to reach out with any questions or comments.
Other posts related to this particular position and scrip, if any, will be attached underneath. Do check those out too.
Disclaimer: The analysis shared here is for informational purposes only and should not be considered as financial advice. Trading in all markets carries inherent risks, and past performance is not indicative of future results. It's essential to conduct your own research and assess your risk tolerance before making any investment decisions. The views expressed in this analysis are solely mine. It's important to note that I am not a SEBI registered analyst, so the analysis provided does not constitute formal investment advice under SEBI regulations.
Dabur trade setup for swing, Do read description!Dabur is good for the potential upside, you can also check our previous analysis
Dabur India are:Net Sales at Rs 3,255.06 crore in December 2023 up 6.96% from Rs. 3,043.17 crore in December 2022.
Quarterly Net Profit at Rs. 506.44 crore in December 2023 up 6.41% from Rs. 475.94 crore in December 2022.
EBITDA stands at Rs. 795.19 crore in December 2023 up 11.89% from Rs. 710.72 crore in December 2022.
Dabur India EPS has increased to Rs. 2.90 in December 2023 from Rs. 2.69 in December 2022.Dabur India shares closed at 539.60 on January 31, 2024 (NSE) and has given -6.25% returns over the last 6 months and -3.25% over the last 12 months.
DABUR : Added on to the positionAn additional position was initiated at approximately the same entry level as the initial one, as the price revisited those levels before reaching the target. This supplementary investment brings the net position size to approximately 2.5% of the net capital. The channel high is earmarked as the profit-taking target, with a potential move of about 22% to reach those levels.
Examining the shareholding pattern reveals a nuanced picture: Mutual Funds and DIIs are progressively increasing their stake in the company, while FIIs and retailers are reducing theirs. This mixed sentiment regarding institutional interest in the stock notwithstanding, the optimistic outlook provided by analysts' forecasts and the company's financials provides sufficient grounds to maintain confidence in holding the stock.
If my perspective changes or if I gather additional fundamental data that influences my views, I will provide updates accordingly.
Thank you for following along with this journey, and I remain committed to sharing insights and updates as my trading strategy evolves. As always, please feel free to reach out with any questions or comments.
Other posts related to this particular position and scrip, if any, will be attached underneath. Do check those out too.
Disclaimer: The analysis shared here is for informational purposes only and should not be considered as financial advice. Trading in all markets carries inherent risks, and past performance is not indicative of future results. It's essential to conduct your own research and assess your risk tolerance before making any investment decisions. The views expressed in this analysis are solely mine. It's important to note that I am not a SEBI registered analyst, so the analysis provided does not constitute formal investment advice under SEBI regulations.
#DABUR Support & Resistance / 28 Feb 2024Here’s a stock I'm keeping an eye on for the next day's trading. I'm aiming for a 1%+ intraday profit with a flexible stop-loss.
The rules are simple - there are two lines marked on the chart that act as support or resistance, depending on where the price opens. When the price touches or crosses either line, from any direction, for the first time, I decide whether to buy or sell at or near the line based on six simple indicators + order book confirmations. If no trade is taken, the chart becomes invalid.
I won't go into details about indicators because they are to be interpreted and change depending on the market. For example, an RSI of 40 means different things in a bull, bear, or choppy market. It's all about looking at things relatively; and each trader has their own setup, rules and approach to risk management.
Check back after the market closes to see how things went. Sometimes, the price might not touch those lines for a day or more. You have to remain patient.
Disclaimer: Trading and investing carry risks, and you should consult with a qualified financial professional before making any investment decisions. Any charts or patterns mentioned are for educational purposes only and do not guarantee future results. Past performance is not indicative of future performance. Always conduct your own research and consider your risk tolerance before engaging in any trading activities.
Dabur looking good at current levelDabur looking good at current support level after continuous falling for 5 days, expecting short covering as market is rallied so much and expecting a correction in market and in that types of market FMCG stocks do well so expecting sector rotation to FMCG for few days
DABUR : Took an entry for about 1.25% of the net capitalTook an entry for approximately 1.25% of the net capital from the low of the parallel channel formed, expecting an upside move of about 20% to the upper trendline of the channel.
Will update beneath this post if the price action doesn't align with expectations. If such a situation occurs, I'll re-evaluate the fundamentals and technicals at that time and then act accordingly.
DaburThis FMCG stock could be a good result shocker. The Company is expected to have high single digit growth for the Q3 and post acquisition of Badshah Masala, Company could bring good numbers for the Q3. On the Technical Front, RSI is showing good strength and 20 DEMA is just crossing the 200 DEMA. Buy this stock @ 568 with a Stop loss of 526. Target could be 600 & 650