⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ARE&M - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | ARE&M | Market Cap | 14,961 Cr. | Current Price | 817 ₹ | High / Low | 1,109 ₹ |
| Stock P/E | 18.6 | Book Value | 425 ₹ | Dividend Yield | 1.27 % | ROCE | 16.8 % |
| ROE | 12.3 % | Face Value | 1.00 ₹ | DMA 50 | 902 ₹ | DMA 200 | 977 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 0.88 % | PAT Qtr | 212 Cr. | PAT Prev Qtr | 194 Cr. |
| RSI | 28.9 | MACD | -25.0 | Volume | 3,38,767 | Avg Vol 1Wk | 3,48,545 |
| Low price | 805 ₹ | High price | 1,109 ₹ | PEG Ratio | 0.94 | Debt to equity | 0.04 |
| 52w Index | 4.06 % | Qtr Profit Var | -12.1 % | EPS | 53.3 ₹ | Industry PE | 28.0 |
📈 Technical Analysis
- Chart Patterns: Price (817 ₹) is below both 50 DMA (902 ₹) and 200 DMA (977 ₹), showing weakness.
- Moving Averages: Downward bias as stock trades under short- and long-term averages.
- RSI: At 28.9, oversold territory, potential rebound signal.
- MACD: Negative (-25.0), bearish crossover persists.
- Bollinger Bands: Price near lower band, support seen around 805–820 ₹.
- Volume Trends: Current volume (3.38L) is slightly below 1-week average (3.48L), showing moderate participation.
🎯 Momentum & Trade Zones
- Support Levels: 805–820 ₹ (near Bollinger lower band), 805 ₹ (recent low).
- Resistance Levels: 902 ₹ (50 DMA), 977 ₹ (200 DMA), 1,000 ₹ (psychological barrier).
- Entry Zone: 805–825 ₹ (accumulation near support).
- Exit Zone: 880–920 ₹ (profit booking near resistance).
- Trend: Reversing from oversold conditions; short-term bounce possible if RSI recovery sustains.
✅ Positive
- ROCE (16.8%) and ROE (12.3%) reflect decent efficiency.
- Debt-to-equity ratio at 0.04, very low leverage.
- Dividend yield of 1.27% provides shareholder returns.
- DII holdings increased (+0.88%), showing domestic institutional confidence.
- EPS at 53.3 ₹ supports valuation.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA, reflecting technical weakness.
- RSI oversold but MACD still negative, mixed signals.
- Quarterly profit variance (-12.1%) highlights earnings pressure.
📉 Company Negative News
- FII holdings decreased (-0.60%), showing reduced foreign investor confidence.
- Quarterly PAT declined (212 Cr. vs 194 Cr.), showing profit contraction.
📊 Company Positive News
- EPS at 53.3 ₹ supports valuation strength.
- DII holdings increased (+0.88%), reflecting domestic support.
🏭 Industry
- Industry P/E at 28.0, higher than company’s 18.6, suggesting ARE&M is relatively undervalued.
- Renewable energy and engineering sector demand remains strong, driven by infrastructure and clean energy initiatives.
📝 Conclusion
- ARE&M is oversold (RSI 28.9) and may see a short-term rebound.
- Optimal entry near 805–825 ₹ with exit around 880–920 ₹.
- Strong fundamentals with low debt and decent efficiency, but weak technicals and declining profits limit upside.
- Medium-term investors should wait for breakout above 902–977 ₹ to confirm reversal trend.