CASTROLIND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | CASTROLIND | Market Cap | 18,281 Cr. | Current Price | 185 ₹ | High / Low | 232 ₹ |
| Stock P/E | 18.8 | Book Value | 19.2 ₹ | Dividend Yield | 4.73 % | ROCE | 60.3 % |
| ROE | 45.9 % | Face Value | 5.00 ₹ | DMA 50 | 183 ₹ | DMA 200 | 192 ₹ |
| Chg in FII Hold | -1.20 % | Chg in DII Hold | -0.38 % | PAT Qtr | 242 Cr. | PAT Prev Qtr | 261 Cr. |
| RSI | 58.9 | MACD | 0.65 | Volume | 16,26,670 | Avg Vol 1Wk | 18,63,559 |
| Low price | 170 ₹ | High price | 232 ₹ | PEG Ratio | 3.26 | Debt to equity | 0.03 |
| 52w Index | 23.6 % | Qtr Profit Var | 3.74 % | EPS | 9.69 ₹ | Industry PE | 13.0 |
📊 CASTROLIND is trading at ₹185, near its 50 DMA (₹183) but below its 200 DMA (₹192), reflecting short-term consolidation. RSI at 58.9 indicates neutral-to-bullish momentum, while MACD at 0.65 shows a mild positive crossover. Bollinger Bands suggest price stabilizing in the mid-range. Volume (16,26,670) is slightly below the weekly average (18,63,559), signaling moderate participation. Overall, the stock is consolidating with a slight bullish bias.
💡 Optimal Entry Zone: ₹175–185 (near support levels).
📈 Exit Zone: ₹200–210 (resistance) with extended breakout potential toward ₹232 (52-week high).
🔎 Trend Status: Consolidating with mild bullish undertone; breakout possible if volume strengthens.
✅ Positive
- Exceptional ROCE (60.3%) and ROE (45.9%) highlight strong efficiency.
- Debt-to-equity ratio of 0.03, effectively debt-free.
- Dividend yield of 4.73% provides strong income support.
- EPS of ₹9.69 with consistent profitability.
⚠️ Limitation
- PE of 18.8 is higher than industry average (13.0), suggesting overvaluation.
- Quarterly PAT declined from ₹261 Cr. to ₹242 Cr., showing earnings pressure.
- PEG ratio of 3.26 indicates expensive growth valuation.
- Institutional holdings decreased (FII -1.20%, DII -0.38%), reflecting reduced confidence.
- Book value of ₹19.2 is low compared to current price.
📉 Company Negative News
- Decline in quarterly PAT and reduced institutional holdings highlight near-term concerns.
📈 Company Positive News
- Strong dividend yield continues to attract income-focused investors.
- Operational efficiency remains robust with high ROCE and ROE.
🏭 Industry
- Industry PE is 13.0, lower than CASTROLIND’s PE of 18.8, suggesting premium valuation.
- Lubricants and automotive sector faces cyclical demand but remains essential for industrial and consumer markets.
🔎 Conclusion
CASTROLIND is consolidating near support levels with strong fundamentals but weaker short-term earnings momentum. Entry near ₹175–185 offers a favorable setup, while exit near ₹200–210 is prudent unless volume strengthens for a breakout toward ₹232. Long-term investors benefit from dividend yield and efficiency metrics but should monitor valuation and institutional sentiment.