CEATLTD - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | CEATLTD | Market Cap | 13,936 Cr. | Current Price | 3,445 ₹ | High / Low | 4,438 ₹ |
| Stock P/E | 16.1 | Book Value | 1,253 ₹ | Dividend Yield | 0.87 % | ROCE | 20.6 % |
| ROE | 18.5 % | Face Value | 10.0 ₹ | DMA 50 | 3,602 ₹ | DMA 200 | 3,593 ₹ |
| Chg in FII Hold | -0.37 % | Chg in DII Hold | 0.42 % | PAT Qtr | 291 Cr. | PAT Prev Qtr | 235 Cr. |
| RSI | 44.0 | MACD | 3.55 | Volume | 4,51,786 | Avg Vol 1Wk | 8,03,196 |
| Low price | 3,000 ₹ | High price | 4,438 ₹ | PEG Ratio | 0.29 | Debt to equity | 0.64 |
| 52w Index | 30.9 % | Qtr Profit Var | 127 % | EPS | 201 ₹ | Industry PE | 24.0 |
📊 CEATLTD is trading at ₹3,445, below its 50 DMA (₹3,602) and 200 DMA (₹3,593), reflecting short-term weakness despite long-term support. RSI at 44.0 indicates oversold-to-neutral momentum, while MACD at 3.55 shows a mild bullish crossover. Bollinger Bands suggest price near the lower band, signaling potential support. Volume (4,51,786) is below the weekly average (8,03,196), showing weaker participation. Overall, the stock is consolidating with a cautious bullish bias.
💡 Optimal Entry Zone: ₹3,400–3,450 (near support levels).
📈 Exit Zone: ₹3,950–4,050 (resistance) with extended breakout potential toward ₹4,438 (52-week high).
🔎 Trend Status: Consolidating with mild bullish undertone; reversal possible if price sustains above 3,600 DMA levels with stronger volume.
✅ Positive
- EPS of ₹201 and quarterly PAT growth of 127% highlight strong earnings momentum.
- ROCE of 20.6% and ROE of 18.5% reflect efficient capital utilization.
- PEG ratio of 0.29 suggests undervaluation relative to growth prospects.
- Dividend yield of 0.87% adds income support.
⚠️ Limitation
- Price trading below both 50 DMA and 200 DMA signals short-term weakness.
- Volume below weekly average, limiting momentum confirmation.
- FII holdings decreased (-0.37%), showing reduced foreign confidence.
- Debt-to-equity ratio of 0.64 indicates moderate leverage.
📉 Company Negative News
- No major negative news reported, but reduced FII holdings and short-term technical weakness are concerns.
📈 Company Positive News
- Quarterly PAT improved from ₹235 Cr. to ₹291 Cr., showing strong profitability.
- DII holdings increased (+0.42%), reflecting domestic institutional support.
🏭 Industry
- Industry PE is 24.0, higher than CEATLTD’s PE of 16.1, suggesting undervaluation.
- Automobile and tyre sector remains supported by demand recovery and infrastructure growth.
🔎 Conclusion
CEATLTD is consolidating below key moving averages but supported by strong earnings growth and undervaluation. Entry near ₹3,400–3,450 offers favorable risk-reward, while exit near ₹3,950–4,050 is prudent unless volume strengthens for a breakout toward ₹4,438. Long-term investors benefit from growth momentum, but short-term traders should monitor DMA resistance and volume trends closely.