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CARBORUNIV - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.9

Last Updated Time : 04 May 26, 11:56 am

Technical Rating: 3.9

Stock Code CARBORUNIV Market Cap 18,130 Cr. Current Price 952 ₹ High / Low 1,070 ₹
Stock P/E 51.0 Book Value 143 ₹ Dividend Yield 0.42 % ROCE 17.6 %
ROE 13.3 % Face Value 1.00 ₹ DMA 50 864 ₹ DMA 200 895 ₹
Chg in FII Hold -0.25 % Chg in DII Hold -0.56 % PAT Qtr 84.5 Cr. PAT Prev Qtr 64.3 Cr.
RSI 64.3 MACD 39.6 Volume 2,31,238 Avg Vol 1Wk 2,91,820
Low price 735 ₹ High price 1,070 ₹ PEG Ratio 6.20 Debt to equity 0.00
52w Index 64.8 % Qtr Profit Var 4.93 % EPS 18.6 ₹ Industry PE 46.6

📊 CARBORUNIV is trading at ₹952, well above its 50 DMA (₹864) and 200 DMA (₹895), confirming medium-term strength. RSI at 64.3 indicates near-overbought conditions, while MACD at 39.6 shows strong bullish crossover. Bollinger Bands suggest price nearing the upper band, signaling potential resistance. Volume (2,31,238) is below the weekly average (2,91,820), showing weaker participation despite price strength.

💡 Optimal Entry Zone: ₹930–950 (near DMA support).

📈 Exit Zone: ₹1,050–1,070 (resistance and 52-week high).

🔎 Trend Status: Trending upward with strong momentum, but risk of short-term correction due to stretched RSI and low volume support.

✅ Positive

  • Debt-free company (Debt-to-equity: 0.00).
  • Strong ROCE of 17.6% and consistent profitability.
  • Quarterly PAT improved from ₹64.3 Cr. to ₹84.5 Cr.
  • Price trading above both 50 DMA and 200 DMA confirms bullish trend.

⚠️ Limitation

  • High PE of 51.0 compared to industry average of 46.6, suggesting premium valuation.
  • PEG ratio of 6.20 indicates growth is already priced in.
  • ROE at 13.3% is moderate relative to valuation.
  • Volume below weekly average, limiting momentum confirmation.
  • Institutional holdings declined (FII -0.25%, DII -0.56%), showing reduced confidence.

📉 Company Negative News

  • No major negative news reported, but valuation premium and declining institutional interest are concerns.

📈 Company Positive News

  • Quarterly PAT growth from ₹64.3 Cr. to ₹84.5 Cr. indicates improving profitability.

🏭 Industry

  • Industry PE is 46.6, slightly lower than CARBORUNIV’s PE of 51.0, suggesting premium valuation.
  • Industrial materials sector remains strong with demand from infrastructure and manufacturing growth.

🔎 Conclusion

CARBORUNIV is a strong swing trade candidate with bullish technical momentum and debt-free fundamentals. Entry near ₹930–950 offers a safer setup, while exit near ₹1,050–1,070 is prudent unless momentum drives a breakout. Long-term investors should be cautious of high valuation, overbought RSI, and declining institutional interest.

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