AMBUJACEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | AMBUJACEM | Market Cap | 1,09,107 Cr. | Current Price | 441 ₹ | High / Low | 625 ₹ |
| Stock P/E | 30.4 | Book Value | 206 ₹ | Dividend Yield | 0.45 % | ROCE | 8.80 % |
| ROE | 8.77 % | Face Value | 2.00 ₹ | DMA 50 | 501 ₹ | DMA 200 | 540 ₹ |
| Chg in FII Hold | -0.11 % | Chg in DII Hold | 0.23 % | PAT Qtr | 227 Cr. | PAT Prev Qtr | 1,571 Cr. |
| RSI | 31.6 | MACD | -24.1 | Volume | 31,30,486 | Avg Vol 1Wk | 46,56,550 |
| Low price | 424 ₹ | High price | 625 ₹ | PEG Ratio | 1.47 | Debt to equity | 0.02 |
| 52w Index | 8.35 % | Qtr Profit Var | -87.1 % | EPS | 13.7 ₹ | Industry PE | 28.2 |
📊 Chart & Trend: Current price (441 ₹) is trading well below both 50 DMA (501 ₹) and 200 DMA (540 ₹), reflecting a strong bearish undertone. Support lies near 424 ₹, resistance at 500–540 ₹.
📉 Momentum Indicators: RSI at 31.6 indicates oversold conditions. MACD at -24.1 confirms bearish momentum. Bollinger Bands show price near the lower band, signaling weakness but potential for a short-term rebound.
📈 Volume Trends: Current volume (31.3 lakh) is below the 1-week average (46.5 lakh), showing weak participation and lack of strong conviction.
🎯 Entry Zone: 425–440 ₹ (near support, oversold RSI may trigger bounce).
🎯 Exit Zone: 495–510 ₹ (near 50 DMA resistance; profit booking advisable).
🔎 Trend Status: The stock is trending downward with oversold signals. Short-term rebound possible, but long-term weakness persists below moving averages.
Positive
- Low debt-to-equity ratio (0.02) indicates strong financial stability.
- Dividend yield at 0.45% adds income appeal.
- EPS at 13.7 ₹ provides a steady earnings base.
Limitation
- P/E (30.4) is slightly above industry average (28.2), suggesting mild overvaluation.
- ROCE (8.80%) and ROE (8.77%) reflect weak capital efficiency.
- Stock trading well below 200 DMA reflects long-term weakness.
Company Negative News
- Quarterly PAT declined sharply (227 Cr vs 1,571 Cr), showing earnings pressure.
- FII holding decreased (-0.11%), reflecting reduced foreign investor confidence.
Company Positive News
- DII holding increased (+0.23%), showing domestic institutional support.
- PEG ratio at 1.47 suggests reasonable valuation relative to growth.
Industry
- Industry PE at 28.2 suggests moderate sector valuation.
- Cement sector benefits from infrastructure demand and government spending, though cyclical pressures remain.
Conclusion
⚖️ AMBUJACEM is trending downward, trading below key moving averages with weak momentum indicators. Entry near 425–440 ₹ offers tactical opportunity for short-term rebound toward 495–510 ₹. Fundamentals show financial stability and modest dividend support, but sharp PAT decline and weak efficiency metrics limit upside. Best suited for cautious swing trades with strict stop-loss near 424 ₹.
Would you like me to extend this into a cement sector basket overlay with peer benchmarking, so you can compare AMBUJACEM’s weak technicals against stronger setups in peers like Ultratech Cement or Shree Cement?