CEATLTD - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | CEATLTD | Market Cap | 14,374 Cr. | Current Price | 3,554 ₹ | High / Low | 4,438 ₹ |
| Stock P/E | 20.4 | Book Value | 1,119 ₹ | Dividend Yield | 0.84 % | ROCE | 15.8 % |
| ROE | 12.2 % | Face Value | 10.0 ₹ | DMA 50 | 3,680 ₹ | DMA 200 | 3,607 ₹ |
| Chg in FII Hold | 0.71 % | Chg in DII Hold | -0.57 % | PAT Qtr | 235 Cr. | PAT Prev Qtr | 202 Cr. |
| RSI | 48.0 | MACD | -82.4 | Volume | 1,27,785 | Avg Vol 1Wk | 2,96,932 |
| Low price | 2,322 ₹ | High price | 4,438 ₹ | PEG Ratio | 0.21 | Debt to equity | 0.69 |
| 52w Index | 58.2 % | Qtr Profit Var | 145 % | EPS | 156 ₹ | Industry PE | 24.8 |
📈 Chart & Trend: CEATLTD is trading at ₹3,554, below both its 50 DMA (₹3,680) and 200 DMA (₹3,607). This indicates short-term weakness and medium-term pressure, with the stock consolidating near support levels.
📊 Momentum Indicators:
- RSI at 48.0 suggests neutral momentum, neither overbought nor oversold.
- MACD at -82.4 shows bearish crossover, confirming short-term weakness.
- Bollinger Bands: Price near lower band, indicating possible mean reversion.
- Volume: Current volume (1,27,785) is lower than 1-week average (2,96,932), showing reduced participation.
🔑 Support & Resistance:
- Support zone: ₹3,500–₹3,540
- Resistance zone: ₹3,680–₹3,700 (near 50 DMA)
- Breakout resistance: ₹3,800–₹3,850
- Long-term support: ₹3,450
📌 Entry & Exit Zones:
- Entry: ₹3,500–₹3,550 (near support)
- Exit: ₹3,680–₹3,800 (resistance zone)
- Stop-loss: ₹3,450
📉 Trend Status: Consolidating with bearish bias. Needs a breakout above ₹3,680–₹3,700 to confirm reversal and trend continuation.
Positive
- EPS of ₹156 with PEG ratio of 0.21 indicates strong growth potential at fair valuation.
- Quarterly PAT growth (₹235 Cr vs ₹202 Cr) shows improving profitability.
- FII holdings increased by 0.71%, signaling foreign investor confidence.
- ROCE at 15.8% reflects decent operational efficiency.
Limitation
- ROE at 12.2% is modest compared to industry leaders.
- Stock trading below both 50 DMA and 200 DMA indicates weakness.
- Volume participation is low, reducing conviction in price moves.
- DII holdings decreased by 0.57%, showing reduced domestic support.
Company Negative News
- No major recent negative news reported, but declining DII holdings and weak momentum indicators are concerns.
Company Positive News
- Strong quarterly profit growth supports earnings momentum.
- FII inflows indicate growing foreign confidence in the company.
Industry
- Industry PE at 24.8 vs stock PE at 20.4 shows CEATLTD trades at a discount.
- Tyre sector supported by auto demand recovery, though raw material cost pressures remain.
Conclusion
⚡ CEATLTD is consolidating with bearish bias, trading below key moving averages. Entry near ₹3,500–₹3,550 offers margin of safety, with exit targets around ₹3,680–₹3,800. Strong earnings growth and attractive PEG ratio support medium-term prospects, but modest ROE and weak momentum indicators remain key risks.
Would you like me to extend this into a peer benchmarking overlay comparing CEATLTD with other tyre manufacturers (like MRF, Apollo Tyres, and JK Tyre) to highlight relative strength, valuation gaps, and sector rotation opportunities?