BERGEPAINT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | BERGEPAINT | Market Cap | 48,376 Cr. | Current Price | 415 ₹ | High / Low | 605 ₹ |
| Stock P/E | 45.2 | Book Value | 49.0 ₹ | Dividend Yield | 0.92 % | ROCE | 24.9 % |
| ROE | 20.0 % | Face Value | 1.00 ₹ | DMA 50 | 465 ₹ | DMA 200 | 513 ₹ |
| Chg in FII Hold | -0.10 % | Chg in DII Hold | 0.37 % | PAT Qtr | 336 Cr. | PAT Prev Qtr | 176 Cr. |
| RSI | 30.2 | MACD | -16.6 | Volume | 3,18,827 | Avg Vol 1Wk | 4,99,950 |
| Low price | 391 ₹ | High price | 605 ₹ | PEG Ratio | 3.49 | Debt to equity | 0.08 |
| 52w Index | 11.2 % | Qtr Profit Var | 9.90 % | EPS | 8.62 ₹ | Industry PE | 32.2 |
📊 Chart & Trend Analysis: BERGEPAINT is currently trading at ₹415, well below its 50 DMA (₹465) and 200 DMA (₹513), indicating a bearish trend. RSI at 30.2 suggests oversold conditions, while MACD at -16.6 confirms negative momentum. Bollinger Bands show price near the lower band, hinting at possible short-term support.
📈 Momentum Signals: Short-term momentum is weak, with declining volumes (3.18L vs avg 4.99L). However, oversold RSI may trigger a technical bounce if support holds.
💹 Entry Zone: Optimal entry lies near ₹391–₹400 (strong support zone).
💰 Exit Zone: Resistance levels are around ₹465 (50 DMA) and ₹513 (200 DMA). A breakout above ₹465 would signal trend reversal.
🔎 Trend Status: The stock is consolidating near support but overall remains in a downtrend unless it sustains above ₹465.
Positive
- Strong ROCE (24.9%) and ROE (20%) indicate efficient capital use.
- Low debt-to-equity (0.08) ensures financial stability.
- Quarterly PAT growth (336 Cr vs 176 Cr) shows improving profitability.
Limitation
- High P/E (45.2) compared to industry average (32.2) makes valuation expensive.
- PEG ratio of 3.49 suggests limited growth relative to valuation.
- Weak technicals with price below major moving averages.
Company Negative News
- FII holding decreased (-0.10%), showing reduced foreign investor confidence.
- Stock has corrected sharply from ₹605 to ₹415, eroding investor sentiment.
Company Positive News
- DII holding increased (+0.37%), indicating domestic institutional support.
- Strong quarterly profit growth and consistent dividend yield (0.92%).
Industry
- Paint sector remains resilient with long-term demand driven by housing and infrastructure.
- Industry P/E at 32.2 shows sector is moderately valued compared to BERGEPAINT.
Conclusion
⚖️ BERGEPAINT is fundamentally strong but technically weak at present. The stock is oversold and may see a short-term bounce from ₹391–₹400 support. However, sustained recovery requires crossing ₹465 (50 DMA). Long-term investors may accumulate gradually, while traders should wait for confirmation above resistance zones.
Would you like me to also prepare a basket overlay with peer benchmarking (e.g., Asian Paints, Kansai Nerolac) so you can compare sector strength and rotation opportunities alongside this report?