BERGEPAINT - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.6

📊 BERGEPAINT is currently consolidating with mild bullish momentum. The stock is hovering around its key moving averages with neutral RSI and a positive MACD, suggesting a potential breakout if volume supports.

📊 Technical Analysis Summary

• Trend Status: Consolidating with slight upward bias
• RSI (53.0): Neutral zone — balanced momentum
• MACD (2.47): Positive crossover — early bullish signal
• Volume: Slightly above 1-week average — moderate buying interest
• DMA 50 & 200: Price at both — indecisive trend, watch for breakout
• Bollinger Bands: Price near mid-band — no strong directional bias

🎯 Entry & Exit Zones

• Support Levels: ₹525, ₹510, ₹495
• Resistance Levels: ₹550, ₹575, ₹605
• Optimal Entry: ₹525–₹535 (on minor dip)
• Exit Target: ₹575–₹605 (short-term resistance)

✅ Positive

• Strong ROCE (24.9%) and ROE (20.0%) — efficient capital use
• EPS of ₹9.14 — consistent earnings
• Low debt-to-equity ratio (0.09) — strong balance sheet
• Quarterly PAT improved from ₹237 Cr to ₹321 Cr — 5.09% growth

⚠️ Limitation

• Price hovering around 50 & 200 DMA — lack of clear trend
• High P/E (57.4) and PEG (4.44) — valuation concerns
• Dividend yield of 0.70% — modest income potential
• FII holding declined by 0.24% — slight institutional caution

📉 Company Negative News

• Stock down ~11% from 52-week high — recent underperformance
• Valuation premium over industry average — potential downside risk if growth slows

📈 Company Positive News

• Quarterly profit growth and stable earnings
• DII holding increased by 0.26% — domestic investor confidence

🏭 Industry

• Sector: Paints & Coatings / Consumer Goods
• Industry P/E: 42.4 vs BERGEPAINT’s P/E: 57.4 — relatively overvalued
• Sector outlook positive with rising urban demand and housing growth

🧾 Conclusion

• BERGEPAINT is consolidating with early bullish signals
• Entry near ₹525–₹535 with targets at ₹575–₹605
• Watch for volume confirmation and RSI breakout above 60
• Long-term outlook supported by strong fundamentals, but valuation remains a concern