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CASTROLIND - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.9

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 3.9

Stock Code CASTROLIND Market Cap 18,304 Cr. Current Price 185 ₹ High / Low 252 ₹
Stock P/E 18.8 Book Value 18.4 ₹ Dividend Yield 4.57 % ROCE 55.2 %
ROE 41.8 % Face Value 5.00 ₹ DMA 50 188 ₹ DMA 200 199 ₹
Chg in FII Hold -0.59 % Chg in DII Hold -0.37 % PAT Qtr 228 Cr. PAT Prev Qtr 244 Cr.
RSI 39.2 MACD -1.39 Volume 8,46,011 Avg Vol 1Wk 13,93,012
Low price 173 ₹ High price 252 ₹ PEG Ratio 2.83 Debt to equity 0.04
52w Index 15.5 % Qtr Profit Var 9.82 % EPS 9.87 ₹ Industry PE 13.9

📊 Technical Analysis

  • Chart Patterns: CASTROLIND has been in a corrective phase from its 52-week high of 252 ₹, now consolidating near 185 ₹.
  • Moving Averages: Price (185 ₹) is below both 50 DMA (188 ₹) and 200 DMA (199 ₹), showing short-term and medium-term weakness.
  • RSI: At 39.2, near oversold territory, suggesting potential rebound.
  • MACD: Negative (-1.39), confirming bearish momentum.
  • Bollinger Bands: Price near lower band, indicating possible support zone.
  • Volume Trends: Current volume (8.46 lakh) below 1-week average (13.93 lakh), showing weak participation.

📈 Momentum & Signals

  • Short-term Momentum: Weak due to negative MACD and low RSI.
  • Support Levels: 180 ₹ (near-term), 173 ₹ (major support).
  • Resistance Levels: 190 ₹ (short-term), 199 ₹ (200 DMA).
  • Optimal Entry Zone: 178–183 ₹ (close to support).
  • Optimal Exit Zone: 190–200 ₹ (near resistance).
  • Trend Status: Consolidating with bearish bias.

✅ Positive

  • Strong ROCE (55.2%) and ROE (41.8%) highlight excellent capital efficiency.
  • Dividend yield of 4.57% provides steady income for investors.
  • Debt-to-equity ratio of 0.04 indicates very low financial risk.

⚠️ Limitation

  • Stock P/E (18.8) higher than industry PE (13.9), suggesting premium valuation.
  • PEG ratio of 2.83 indicates limited growth relative to valuation.
  • Weak trading volume reduces conviction in price moves.

📉 Company Negative News

  • Quarterly PAT declined (228 Cr vs 244 Cr), showing earnings pressure.
  • FII holdings decreased (-0.59%) and DII holdings decreased (-0.37%), reflecting reduced institutional confidence.

📈 Company Positive News

  • Quarterly profit variation of 9.82% highlights resilience despite decline.
  • Strong fundamentals with high ROCE and ROE support long-term outlook.

🏭 Industry

  • Lubricants and automotive sector supported by industrial demand and vehicle growth.
  • Industry PE at 13.9 vs stock PE at 18.8 — stock trades at premium valuation.

🔎 Conclusion

  • CASTROLIND is consolidating with short-term bearish signals but strong fundamentals.
  • Best

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