CASTROLIND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | CASTROLIND | Market Cap | 18,534 Cr. | Current Price | 187 ₹ | High / Low | 232 ₹ |
| Stock P/E | 19.3 | Book Value | 19.2 ₹ | Dividend Yield | 4.66 % | ROCE | 60.3 % |
| ROE | 45.9 % | Face Value | 5.00 ₹ | DMA 50 | 187 ₹ | DMA 200 | 195 ₹ |
| Chg in FII Hold | -0.59 % | Chg in DII Hold | -0.37 % | PAT Qtr | 261 Cr. | PAT Prev Qtr | 228 Cr. |
| RSI | 54.0 | MACD | -0.06 | Volume | 24,33,299 | Avg Vol 1Wk | 20,68,783 |
| Low price | 181 ₹ | High price | 232 ₹ | PEG Ratio | 3.36 | Debt to equity | 0.03 |
| 52w Index | 13.2 % | Qtr Profit Var | -3.87 % | EPS | 9.60 ₹ | Industry PE | 12.5 |
📈 Chart & Trend: CASTROLIND is trading at ₹187, exactly at its 50 DMA (₹187) but below its 200 DMA (₹195). This indicates consolidation with mild weakness in the medium term.
📊 Momentum Indicators:
- RSI at 54.0 suggests neutral momentum, neither overbought nor oversold.
- MACD at -0.06 shows flat bearish crossover, indicating indecision.
- Bollinger Bands: Price near mid-band, no breakout signal.
- Volume: Current volume (24.3 lakh) is slightly higher than 1-week average (20.6 lakh), showing healthy participation.
🔑 Support & Resistance:
- Support zone: ₹182–₹185
- Resistance zone: ₹192–₹195 (near 200 DMA)
- Breakout resistance: ₹205–₹210
- Long-term support: ₹181
📌 Entry & Exit Zones:
- Entry: ₹182–₹187 (near support and 50 DMA)
- Exit: ₹192–₹205 (resistance zone)
- Stop-loss: ₹178
📉 Trend Status: Consolidating with mild bearish bias. Needs a breakout above ₹195–₹200 to confirm trend reversal.
Positive
- ROCE at 60.3% and ROE at 45.9% reflect exceptional efficiency and shareholder returns.
- Dividend yield of 4.66% provides strong income support.
- Quarterly PAT at ₹261 Cr vs ₹228 Cr shows sequential improvement.
- Debt-to-equity ratio of 0.03 indicates negligible leverage.
Limitation
- PEG ratio of 3.36 suggests valuation is expensive relative to growth.
- Stock P/E of 19.3 is higher than industry PE of 12.5, showing premium valuation.
- Quarterly profit variation at -3.87% indicates earnings pressure.
- FII (-0.59%) and DII (-0.37%) holdings declined, showing reduced institutional confidence.
Company Negative News
- No major recent negative news reported, but declining institutional holdings and earnings pressure are concerns.
Company Positive News
- Strong dividend yield and high ROCE/ROE highlight financial strength.
- Sequential PAT growth supports earnings momentum.
Industry
- Industry PE at 12.5 vs stock PE at 19.3 shows CASTROLIND trades at a premium.
- Lubricants sector remains stable with steady demand, though competition and pricing pressures persist.
Conclusion
⚡ CASTROLIND is consolidating near its 50 DMA, with resistance at ₹195–₹200. Entry near ₹182–₹187 offers margin of safety, with exit targets around ₹192–₹205. Strong fundamentals, high dividend yield, and efficiency support long-term prospects, but premium valuation and declining institutional interest pose short-term risks.
Would you like me to extend this into a peer benchmarking overlay comparing CASTROLIND with other lubricant and specialty chemical companies (like Gulf Oil, Tide Water Oil, and Savita Oil) to highlight relative strength and valuation gaps?