CERA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | CERA | Market Cap | 6,775 Cr. | Current Price | 5,253 ₹ | High / Low | 7,275 ₹ |
| Stock P/E | 30.1 | Book Value | 1,063 ₹ | Dividend Yield | 1.24 % | ROCE | 22.4 % |
| ROE | 18.3 % | Face Value | 5.00 ₹ | DMA 50 | 5,072 ₹ | DMA 200 | 5,525 ₹ |
| Chg in FII Hold | -0.41 % | Chg in DII Hold | 0.17 % | PAT Qtr | 35.0 Cr. | PAT Prev Qtr | 56.6 Cr. |
| RSI | 56.2 | MACD | 122 | Volume | 4,490 | Avg Vol 1Wk | 8,981 |
| Low price | 4,461 ₹ | High price | 7,275 ₹ | PEG Ratio | 1.75 | Debt to equity | 0.04 |
| 52w Index | 28.1 % | Qtr Profit Var | -23.7 % | EPS | 165 ₹ | Industry PE | 62.2 |
📊 CERA is trading at ₹5,253, above its 50 DMA (₹5,072) but below its 200 DMA (₹5,525), showing short-term strength but medium-term weakness. RSI at 56.2 indicates neutral momentum, while MACD at 122 reflects strong bullish crossover. Bollinger Bands suggest price leaning toward the upper band, but volume (4,490) is below the weekly average (8,981), signaling weak participation. Overall, the stock is consolidating with a bullish bias but faces earnings pressure.
💡 Optimal Entry Zone: ₹5,100–5,200 (near 50 DMA support).
📈 Exit Zone: ₹5,600–5,800 (resistance) with extended breakout potential toward ₹7,275 (52-week high).
🔎 Trend Status: Consolidating with bullish undertone; reversal risk if profits continue to decline and volume remains weak.
✅ Positive
- Strong ROCE (22.4%) and ROE (18.3%) highlight efficiency.
- Debt-to-equity ratio of 0.04, effectively debt-free.
- EPS of ₹165 supports long-term valuation strength.
- DII holdings increased (+0.17%), showing domestic institutional support.
⚠️ Limitation
- Quarterly PAT declined from ₹56.6 Cr. to ₹35.0 Cr. (-23.7%).
- RSI at 56.2 indicates limited upside momentum.
- PEG ratio of 1.75 suggests growth is already priced in.
- Trading volume below weekly average, showing weaker participation.
📉 Company Negative News
- Recent quarterly PAT decline highlights short-term earnings weakness.
- FII holdings decreased (-0.41%), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased (+0.17%), reflecting domestic institutional confidence.
- Stock trading above 50 DMA, supported by bullish MACD momentum.
🏭 Industry
- Industry PE is 62.2, higher than CERA’s PE of 30.1, suggesting undervaluation.
- Building materials and sanitaryware sector benefits from housing demand and infrastructure growth in India.
🔎 Conclusion
CERA is a fair swing trade candidate with strong fundamentals and bullish technicals, but declining profits and reduced foreign investor confidence limit upside. Entry near ₹5,100–5,200 offers a safer setup, while exit near ₹5,600–5,800 is prudent unless momentum drives a breakout toward ₹7,275. Long-term investors should monitor earnings growth and institutional sentiment closely.