ARE&M - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | ARE&M | Market Cap | 14,353 Cr. | Current Price | 784 ₹ | High / Low | 1,109 ₹ |
| Stock P/E | 19.0 | Book Value | 425 ₹ | Dividend Yield | 1.34 % | ROCE | 16.8 % |
| ROE | 12.3 % | Face Value | 1.00 ₹ | DMA 50 | 845 ₹ | DMA 200 | 937 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 0.88 % | PAT Qtr | 183 Cr. | PAT Prev Qtr | 212 Cr. |
| RSI | 36.6 | MACD | -22.6 | Volume | 4,15,341 | Avg Vol 1Wk | 4,27,137 |
| Low price | 759 ₹ | High price | 1,109 ₹ | PEG Ratio | 0.96 | Debt to equity | 0.04 |
| 52w Index | 7.33 % | Qtr Profit Var | -22.1 % | EPS | 44.5 ₹ | Industry PE | 25.0 |
📊 Chart & Trend: Current price (784 ₹) is trading below both 50 DMA (845 ₹) and 200 DMA (937 ₹), reflecting a bearish undertone. Support lies near 759 ₹, resistance at 845–937 ₹.
📉 Momentum Indicators: RSI at 36.6 suggests oversold conditions. MACD at -22.6 confirms bearish bias. Bollinger Bands show price near the lower band, signaling weakness but potential for a short-term rebound.
📈 Volume Trends: Current volume (4.15 lakh) is slightly below the 1-week average (4.27 lakh), showing muted participation and lack of strong conviction.
🎯 Entry Zone: 760–780 ₹ (near support, tactical entry).
🎯 Exit Zone: 840–860 ₹ (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
- ROCE (16.8%) and ROE (12.3%) reflect decent capital efficiency.
- Debt-to-equity ratio at 0.04 indicates near debt-free status.
- Dividend yield at 1.34% adds income appeal.
Limitation
- P/E (19.0) is below industry average (25.0), but weak earnings momentum limits attractiveness.
- Quarterly profit variance (-22.1%) shows earnings decline.
- Stock trading well below 200 DMA reflects long-term weakness.
Company Negative News
- Quarterly PAT declined (183 Cr vs 212 Cr), showing earnings pressure.
- FII holding decreased (-0.60%), reflecting reduced foreign investor confidence.
Company Positive News
- DII holding increased (+0.88%), showing domestic institutional support.
- EPS at 44.5 ₹ provides a steady earnings base.
Industry
- Industry PE at 25.0 suggests moderate sector valuation.
- Renewable energy and engineering sector benefits from government incentives and infrastructure demand.
Conclusion
⚖️ ARE&M is trending downward, trading below key moving averages with weak momentum indicators. Entry near 760–780 ₹ offers tactical opportunity for short-term rebound toward 840–860 ₹. Fundamentals show decent efficiency and dividend support, but declining PAT and weak momentum limit upside. Best suited for cautious swing trades with strict stop-loss near 759 ₹.
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