AARTIIND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | AARTIIND | Market Cap | 18,402 Cr. | Current Price | 508 ₹ | High / Low | 512 ₹ |
| Stock P/E | 49.9 | Book Value | 158 ₹ | Dividend Yield | 0.20 % | ROCE | 6.43 % |
| ROE | 6.22 % | Face Value | 5.00 ₹ | DMA 50 | 438 ₹ | DMA 200 | 419 ₹ |
| Chg in FII Hold | 0.68 % | Chg in DII Hold | 1.90 % | PAT Qtr | 146 Cr. | PAT Prev Qtr | 80.0 Cr. |
| RSI | 75.9 | MACD | 20.5 | Volume | 15,67,416 | Avg Vol 1Wk | 21,11,937 |
| Low price | 338 ₹ | High price | 512 ₹ | PEG Ratio | -1.47 | Debt to equity | 0.69 |
| 52w Index | 97.2 % | Qtr Profit Var | 211 % | EPS | 10.4 ₹ | Industry PE | 28.9 |
📈 Chart Patterns & Trend: AARTIIND is trading well above both 50 DMA (₹438) and 200 DMA (₹419), showing strong momentum. RSI at 75.9 indicates overbought conditions, while MACD at 20.5 confirms bullish divergence. Bollinger Bands suggest volatility expansion with price near its 52-week high (₹512), signaling stretched momentum. Price action is at resistance levels, raising caution for short-term traders.
🔑 Momentum Signals: RSI above 70 signals overbought territory. MACD positive supports bullish bias. Volume (15.6L) is below average (21.1L), showing reduced participation, which weakens breakout conviction. Trendlines highlight support near ₹480–₹490 and resistance near ₹510–₹520.
🎯 Entry Zone: ₹460 – ₹480 (support levels)
💰 Exit Zone: ₹510 – ₹520 (resistance levels)
📊 Status: Trending upward but overbought; consolidation or pullback likely unless volumes strengthen.
Positive
- Quarterly PAT growth (+211%) shows strong earnings recovery
- EPS at ₹10.4 reflects profitability
- FII holdings increased (+0.68%) and DII holdings rose (+1.90%)
- Stock trading above both 50 DMA and 200 DMA
Limitation
- High P/E (49.9) vs industry average (28.9)
- Weak ROE (6.22%) and ROCE (6.43%)
- Negative PEG ratio (-1.47), indicating poor growth-adjusted valuation
- RSI overbought at 75.9, risk of pullback
- Debt-to-equity ratio at 0.69 adds leverage risk
Company Negative News
- Valuation concerns due to stretched multiples
- Efficiency ratios remain weak despite profit growth
Company Positive News
- Quarterly profit surged significantly (₹146 Cr vs ₹80 Cr)
- Strong institutional support from both FII and DII inflows
Industry
- Industry PE at 28.9 highlights sector stability
- AARTIIND trading at premium valuations compared to peers
Conclusion
⚠️ AARTIIND is trending upward with strong momentum but is overbought, raising risk of short-term correction. Despite robust profit growth and institutional support, weak ROE/ROCE and stretched valuations limit upside. Best suited for cautious entries near ₹460–₹480 with profit-taking around ₹510–₹520. Long-term investors should monitor efficiency improvements before accumulation.
Would you like me to add a sector overlay comparison (Aarti Industries vs peers like Atul, Vinati Organics, and Deepak Nitrite) so you can see relative strength and valuation gaps in one modular view?