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AMBUJACEM - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.5

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

Technical Rating: 3.5

Stock Code AMBUJACEM Market Cap 1,26,224 Cr. Current Price 511 ₹ High / Low 625 ₹
Stock P/E 35.2 Book Value 206 ₹ Dividend Yield 0.40 % ROCE 8.80 %
ROE 8.77 % Face Value 2.00 ₹ DMA 50 544 ₹ DMA 200 557 ₹
Chg in FII Hold -0.11 % Chg in DII Hold 0.23 % PAT Qtr 227 Cr. PAT Prev Qtr 1,571 Cr.
RSI 32.0 MACD -8.85 Volume 22,47,679 Avg Vol 1Wk 36,51,305
Low price 455 ₹ High price 625 ₹ PEG Ratio 1.70 Debt to equity 0.02
52w Index 32.7 % Qtr Profit Var -87.1 % EPS 13.7 ₹ Industry PE 30.0

📈 Technical Analysis

  • Chart Patterns: Price (511 ₹) is below both 50 DMA (544 ₹) and 200 DMA (557 ₹), showing weakness.
  • Moving Averages: Downward bias as stock trades under short- and long-term averages.
  • RSI: At 32.0, oversold territory, potential rebound signal.
  • MACD: Negative (-8.85), bearish crossover persists.
  • Bollinger Bands: Price near lower band, support seen around 500–510 ₹.
  • Volume Trends: Current volume (22.47L) is below 1-week average (36.51L), showing weak participation.

🎯 Momentum & Trade Zones

  • Support Levels: 500–510 ₹ (near Bollinger lower band), 455 ₹ (recent low).
  • Resistance Levels: 544 ₹ (50 DMA), 557 ₹ (200 DMA), 600 ₹ (psychological barrier).
  • Entry Zone: 500–515 ₹ (accumulation near support).
  • Exit Zone: 540–560 ₹ (profit booking near resistance).
  • Trend: Reversing from oversold conditions; short-term bounce possible if RSI recovery sustains.

✅ Positive

  • Debt-to-equity ratio at 0.02, virtually debt-free.
  • DII holdings increased (+0.23%), showing domestic institutional confidence.
  • PEG ratio (1.70) indicates fair valuation relative to growth.
  • 52-week index return of 32.7% highlights long-term resilience.

⚠️ Limitation

  • Stock trading below both 50 DMA and 200 DMA, reflecting technical weakness.
  • High P/E (35.2) compared to industry average (30.0), suggesting overvaluation.
  • ROCE (8.80%) and ROE (8.77%) reflect modest efficiency.
  • Dividend yield at 0.40% provides limited income support.

📉 Company Negative News

  • Quarterly PAT dropped sharply (227 Cr. vs 1,571 Cr.), profit variance at -87.1%.
  • FII holdings decreased (-0.11%), showing reduced foreign investor confidence.

📊 Company Positive News

  • DII holdings increased (+0.23%), reflecting domestic support.
  • EPS at 13.7 ₹ provides valuation strength despite weak profitability.

🏭 Industry

  • Industry P/E at 30.0, lower than company’s 35.2, suggesting sector peers may be more attractively priced.
  • Cement sector demand remains steady, driven by infrastructure and housing growth.

📝 Conclusion

  • AMBUJACEM is oversold (RSI 32.0) and may see a short-term rebound.
  • Optimal entry near 500–515 ₹ with exit around 540–560 ₹.
  • Strong long-term resilience, but weak quarterly earnings and modest efficiency limit upside.
  • Medium-term investors should wait for breakout above 544–557 ₹ to confirm reversal trend.

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