BRIGADE - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.1

📈 Technical Analysis

• Chart Patterns: Stock is trading near its 52-week low (813 ₹) and far below its high (1,339 ₹), indicating weakness and a corrective phase.
• Moving Averages: Current price (866 ₹) is below both 50 DMA (919 ₹) and 200 DMA (996 ₹), confirming bearish bias.
• RSI: At 42.8, RSI is weak but not oversold, suggesting limited buying strength.
• MACD: Negative (-19.2), showing bearish momentum and trend continuation.
• Bollinger Bands: Price is near the lower band, signaling weakness and possible short-term consolidation.
• Volume Trends: Current volume (2,05,988) is below 1-week average (2,45,624), indicating reduced participation and weak momentum.

🎯 Momentum & Trade Zones

• Support Levels: 850 ₹ (near-term support), 813 ₹ (52-week low).
• Resistance Levels: 919 ₹ (50 DMA), 996 ₹ (200 DMA), 1,050 ₹ (psychological resistance).
• Entry Zone: 850–870 ₹ (near support, favorable risk-reward).
• Exit Zone: 910–950 ₹ (near resistance/top band).
• Trend Status: Reversing downward, currently weak with bearish signals.

✅ Positive

• Strong book value of 252 ₹ provides asset backing.
• Dividend yield of 0.29% offers shareholder returns.
• Debt-to-equity ratio of 0.32 indicates manageable leverage.

⚠️ Limitation

• High P/E ratio (52.4) compared to industry average (33.7), suggesting overvaluation.
• Weak ROCE (9.09%) and ROE (8.80%) indicate poor capital efficiency.
• Quarterly PAT declined (50.2 Cr. vs 55.0 Cr.), showing earnings pressure.
• Stock trading at only 10.2% of its 52-week range, reflecting severe underperformance.

📉 Company Negative News

• FII holdings decreased (-0.66%), showing reduced foreign investor confidence.
• DII holdings also decreased (-0.16%), indicating weaker domestic institutional support.
• Quarterly profit fell by -44.6%, reflecting operational challenges.

📊 Company Positive News

• EPS of 16.6 ₹ supports earnings visibility despite weak profitability.
• Stable debt-to-equity ratio highlights financial discipline.

🏭 Industry

• Industry P/E at 33.7, lower than Brigade’s valuation, suggesting premium pricing.
• Real estate sector remains cyclical but supported by urban demand and infrastructure growth.

📝 Conclusion

• Brigade is in a bearish trend, trading near its 52-week low with weak momentum.
• Fundamentals show asset backing, but valuations are stretched and earnings have weakened.
• Optimal strategy: Accumulate cautiously near support (850–870 ₹) and book profits near resistance (910–950 ₹).
• Short-term outlook: Weak with possible consolidation; long-term outlook depends on earnings recovery and sector demand.