ASIANPAINT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | ASIANPAINT | Market Cap | 2,17,014 Cr. | Current Price | 2,263 ₹ | High / Low | 2,986 ₹ |
| Stock P/E | 54.0 | Book Value | 199 ₹ | Dividend Yield | 1.10 % | ROCE | 27.3 % |
| ROE | 20.7 % | Face Value | 1.00 ₹ | DMA 50 | 2,430 ₹ | DMA 200 | 2,530 ₹ |
| Chg in FII Hold | 1.14 % | Chg in DII Hold | -0.42 % | PAT Qtr | 1,146 Cr. | PAT Prev Qtr | 956 Cr. |
| RSI | 39.5 | MACD | -68.2 | Volume | 8,99,653 | Avg Vol 1Wk | 11,00,582 |
| Low price | 2,163 ₹ | High price | 2,986 ₹ | PEG Ratio | 7.64 | Debt to equity | 0.08 |
| 52w Index | 12.2 % | Qtr Profit Var | 3.80 % | EPS | 39.4 ₹ | Industry PE | 32.2 |
📊 Chart & Trend: Current price (2,263 ₹) is trading below both 50 DMA (2,430 ₹) and 200 DMA (2,530 ₹), reflecting a bearish undertone. Support lies near 2,160–2,200 ₹, resistance at 2,430–2,530 ₹.
📉 Momentum Indicators: RSI at 39.5 suggests oversold conditions. MACD at -68.2 confirms bearish momentum. Bollinger Bands show price near the lower band, signaling weakness but potential for a short-term rebound.
📈 Volume Trends: Current volume (8.99 lakh) is below the 1-week average (11.0 lakh), showing weak participation and lack of strong conviction.
🎯 Entry Zone: 2,200–2,250 ₹ (near support, tactical entry).
🎯 Exit Zone: 2,430–2,500 ₹ (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
- High ROCE (27.3%) and ROE (20.7%) reflect strong capital efficiency.
- Dividend yield at 1.10% adds income appeal.
- EPS at 39.4 ₹ highlights a solid earnings base.
Limitation
- P/E (54.0) is significantly above industry average (32.2), suggesting steep overvaluation.
- PEG ratio at 7.64 indicates stretched valuation relative to growth.
- Stock trading well below 200 DMA reflects long-term weakness.
Company Negative News
- Quarterly PAT declined (1,146 Cr vs 956 Cr), showing earnings pressure despite growth.
- DII holding decreased (-0.42%), reflecting reduced domestic institutional confidence.
Company Positive News
- FII holding increased (+1.14%), showing foreign investor interest.
- Quarterly profit variance (+3.80%) highlights operational improvement.
- Strong 52-week performance (12.2% index gain) reflects resilience despite volatility.
Industry
- Industry PE at 32.2 suggests moderate sector valuation.
- Paints and coatings sector benefits from housing demand, infrastructure growth, and premium product adoption.
Conclusion
⚖️ ASIANPAINT is trending downward, trading below key moving averages with weak momentum indicators. Entry near 2,200–2,250 ₹ offers tactical opportunity for short-term rebound toward 2,430–2,500 ₹. Fundamentals remain strong with efficiency and dividend support, but steep valuations and weak momentum limit upside. Best suited for cautious swing trades with strict stop-loss near 2,200 ₹.
Would you like me to extend this into a paints & coatings sector basket overlay with peer benchmarking, so you can compare ASIANPAINT’s stretched valuation against peers like Berger Paints, Kansai Nerolac, and Indigo Paints?