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AFCONS - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.3

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 3.3

Stock Code AFCONS Market Cap 12,284 Cr. Current Price 334 ₹ High / Low 499 ₹
Stock P/E 20.8 Book Value 134 ₹ Dividend Yield 0.76 % ROCE 22.5 %
ROE 14.9 % Face Value 10.0 ₹ DMA 50 376 ₹ DMA 200 417 ₹
Chg in FII Hold 0.00 % Chg in DII Hold 1.66 % PAT Qtr 112 Cr. PAT Prev Qtr 136 Cr.
RSI 24.1 MACD -14.5 Volume 4,63,408 Avg Vol 1Wk 5,91,069
Low price 319 ₹ High price 499 ₹ PEG Ratio 0.67 Debt to equity 0.73
52w Index 8.36 % Qtr Profit Var -20.2 % EPS 16.0 ₹ Industry PE 16.9

📈 Technical Analysis

  • Chart Patterns: Price (334 ₹) is below both 50 DMA (376 ₹) and 200 DMA (417 ₹), showing weakness.
  • Moving Averages: Downward bias as stock trades under key averages.
  • RSI: Oversold at 24.1, potential rebound signal.
  • MACD: Negative (-14.5), bearish crossover persists.
  • Bollinger Bands: Price near lower band, support seen around 325–330 ₹.
  • Volume Trends: Current volume (4.63L) slightly below 1-week average (5.91L), moderate participation.

🎯 Momentum & Trade Zones

  • Support Levels: 325–330 ₹ (near Bollinger lower band), 319 ₹ (recent low).
  • Resistance Levels: 376 ₹ (50 DMA), 400 ₹ (psychological barrier), 417 ₹ (200 DMA).
  • Entry Zone: 325–335 ₹ (accumulation near support).
  • Exit Zone: 370–385 ₹ (near resistance cluster).
  • Trend: Currently reversing from oversold conditions; short-term bounce possible if RSI recovery sustains.

✅ Positive

  • Strong ROCE (22.5%) and ROE (14.9%) reflect efficient capital use.
  • Reasonable P/E (20.8) compared to industry average (16.9).
  • PEG ratio (0.67) indicates fair valuation relative to growth.
  • DII holdings increased (+1.66%), showing domestic institutional confidence.

⚠️ Limitation

  • Stock trading below both 50 DMA and 200 DMA, reflecting technical weakness.
  • Debt-to-equity ratio at 0.73, moderately leveraged.
  • Dividend yield at 0.76% is modest, limited income support.

📉 Company Negative News

  • Quarterly PAT declined (112 Cr. vs 136 Cr.), showing earnings pressure.
  • Quarterly profit variance at -20.2% highlights weak performance.

📊 Company Positive News

  • Stable EPS (16.0 ₹) supports valuation.
  • Strong ROCE and ROE metrics indicate operational efficiency.

🏭 Industry

  • Industry P/E at 16.9, slightly lower than company’s 20.8, suggesting sector peers may be more attractively priced.
  • Infrastructure sector demand remains steady with government-led projects driving growth.

📝 Conclusion

  • AFCONS is showing signs of reversal from oversold conditions (RSI 24.1).
  • Optimal entry near 325–335 ₹ with exit around 370–385 ₹.
  • Fundamentals remain strong, but recent earnings decline and leverage limit upside.
  • Short-term bounce possible; medium-term investors should wait for breakout above 376 ₹ to confirm trend reversal.

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