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CANFINHOME - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.9

Last Updated Time : 19 Mar 26, 08:56 pm

Technical Rating: 3.9

Stock Code CANFINHOME Market Cap 11,322 Cr. Current Price 851 ₹ High / Low 972 ₹
Stock P/E 11.6 Book Value 410 ₹ Dividend Yield 1.42 % ROCE 9.34 %
ROE 18.2 % Face Value 2.00 ₹ DMA 50 876 ₹ DMA 200 844 ₹
Chg in FII Hold 0.72 % Chg in DII Hold 0.82 % PAT Qtr 265 Cr. PAT Prev Qtr 251 Cr.
RSI 45.4 MACD -16.6 Volume 5,05,575 Avg Vol 1Wk 2,57,369
Low price 615 ₹ High price 972 ₹ PEG Ratio 0.53 Debt to equity 6.61
52w Index 66.1 % Qtr Profit Var 24.8 % EPS 73.2 ₹ Industry PE 14.1

📈 Chart & Trend: CANFINHOME is trading at ₹851, below its 50 DMA (₹876) but slightly above its 200 DMA (₹844). This shows short-term weakness but long-term support remains intact.

📊 Momentum Indicators:

- RSI at 45.4 indicates neutral to mildly oversold conditions.

- MACD at -16.6 signals bearish crossover, suggesting short-term weakness.

- Bollinger Bands: Price near mid-band, no breakout yet.

- Volume: Current volume (5,05,575) is nearly double the 1-week average (2,57,369), showing strong participation.

🔑 Support & Resistance:

- Support zone: ₹830–₹845 (near 200 DMA)

- Resistance zone: ₹870–₹880 (near 50 DMA)

- Breakout resistance: ₹900–₹910

- Long-term support: ₹800

📌 Entry & Exit Zones:

- Entry: ₹835–₹845 (near support and 200 DMA)

- Exit: ₹880–₹900 (resistance zone)

- Stop-loss: ₹815

📉 Trend Status: Consolidating with mild bearish bias. Needs a breakout above ₹880 to confirm trend continuation.


Positive

  • EPS of ₹73.2 with PEG ratio of 0.53 indicates undervaluation.
  • ROE at 18.2% reflects strong shareholder returns.
  • Quarterly PAT growth (265 Cr vs 251 Cr) shows improving profitability.
  • FII and DII holdings increased, signaling institutional confidence.

Limitation

  • High debt-to-equity ratio of 6.61 raises leverage concerns.
  • ROCE at 9.34% is below industry benchmarks.
  • Stock trading below 50 DMA indicates short-term weakness.

Company Negative News

  • No major recent negative news reported, but debt levels remain a structural risk.

Company Positive News

  • Strong quarterly profit growth and consistent dividend yield of 1.42%.
  • Institutional investors increasing stake.

Industry

  • Industry PE at 14.1 vs stock PE at 11.6 shows relative undervaluation.
  • Housing finance sector supported by government initiatives and demand recovery.

Conclusion

⚡ CANFINHOME is consolidating with short-term weakness but long-term support intact. Entry near ₹835–₹845 offers margin of safety, with exit targets around ₹880–₹900. Strong fundamentals and institutional interest support medium-term growth, but high leverage remains a key risk.

Would you like me to extend this into a peer benchmarking overlay comparing CANFINHOME with LIC Housing, PNB Housing, and HDFC Ltd? That way you’ll see relative strength, valuation gaps, and sector rotation opportunities in one consolidated view.

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