BRITANNIA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | BRITANNIA | Market Cap | 1,28,663 Cr. | Current Price | 5,342 ₹ | High / Low | 6,337 ₹ |
| Stock P/E | 50.2 | Book Value | 193 ₹ | Dividend Yield | 1.70 % | ROCE | 61.4 % |
| ROE | 60.1 % | Face Value | 1.00 ₹ | DMA 50 | 5,586 ₹ | DMA 200 | 5,720 ₹ |
| Chg in FII Hold | 0.75 % | Chg in DII Hold | -0.73 % | PAT Qtr | 685 Cr. | PAT Prev Qtr | 688 Cr. |
| RSI | 37.1 | MACD | -93.4 | Volume | 2,04,422 | Avg Vol 1Wk | 3,66,888 |
| Low price | 5,280 ₹ | High price | 6,337 ₹ | PEG Ratio | 5.46 | Debt to equity | 0.29 |
| 52w Index | 5.91 % | Qtr Profit Var | 23.0 % | EPS | 106 ₹ | Industry PE | 53.1 |
📈 Chart & Trend Analysis: BRITANNIA is trading at ₹5,342, below both its 50 DMA (₹5,586) and 200 DMA (₹5,720), indicating short-term and long-term weakness. RSI at 37.1 suggests bearish momentum, nearing oversold territory. MACD at -93.4 shows strong negative divergence, confirming downward bias. Bollinger Bands place the price near the lower band, signaling downside pressure with limited recovery signs.
📊 Volume Trends: Current volume (2,04,422) is below the 1-week average (3,66,888), reflecting weak participation and lack of strong buying interest.
🔑 Support & Resistance: Strong support lies at ₹5,280 (recent low). Resistance is near ₹5,586 (50 DMA) and ₹5,720 (200 DMA). Optimal entry zone: ₹5,300–₹5,350. Exit/profit booking zone: ₹5,600–₹5,700.
📉 Momentum Signals: RSI indicates oversold conditions, while MACD confirms bearish momentum. Short-term signals favor cautious accumulation near support zones with exits around resistance levels.
📌 Trend Status: The stock is currently consolidating with bearish bias, not reversing upward yet.
Positive ✅
- Strong ROCE (61.4%) and ROE (60.1%) highlight excellent capital efficiency.
- Dividend yield of 1.70% adds shareholder value.
- EPS of ₹106 supports earnings visibility.
Limitation ⚠️
- Stock trading below both 50 DMA and 200 DMA indicates technical weakness.
- High P/E ratio (50.2) compared to industry average (53.1) suggests stretched valuation.
- PEG ratio of 5.46 indicates expensive growth prospects.
Company Negative News ❌
- DII holding decreased (-0.73%), showing reduced domestic institutional support.
- PAT declined slightly (₹688 Cr → ₹685 Cr), reflecting earnings stagnation.
Company Positive News 🌟
- FII holding increased (+0.75%), showing foreign investor confidence.
- Quarterly profit variance (+23.0%) highlights operational improvement YoY.
Industry 🏭
- FMCG sector trades at industry PE of 53.1, making BRITANNIA slightly cheaper compared to peers.
- Sector growth driven by rising packaged food demand and consumer preference shifts.
Conclusion 📌
BRITANNIA is consolidating with bearish bias, trading below key moving averages and showing weak momentum. Fundamentals remain strong with high ROCE and ROE, but valuations are stretched and earnings stagnation persists. Optimal strategy: accumulate cautiously near ₹5,300–₹5,350 support zones and consider profit booking near ₹5,600–₹5,700. Trend remains consolidative with downside risk unless volumes improve.
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