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CHALET - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

Last Updated Time : 04 May 26, 11:56 am

Technical Rating: 3.6

Stock Code CHALET Market Cap 16,593 Cr. Current Price 758 ₹ High / Low 1,082 ₹
Stock P/E 26.2 Book Value 158 ₹ Dividend Yield 0.13 % ROCE 11.9 %
ROE 6.88 % Face Value 10.0 ₹ DMA 50 784 ₹ DMA 200 845 ₹
Chg in FII Hold -0.37 % Chg in DII Hold 0.58 % PAT Qtr 127 Cr. PAT Prev Qtr 168 Cr.
RSI 45.3 MACD 4.47 Volume 82,452 Avg Vol 1Wk 1,09,917
Low price 690 ₹ High price 1,082 ₹ PEG Ratio 0.43 Debt to equity 0.64
52w Index 17.3 % Qtr Profit Var 24.9 % EPS 28.9 ₹ Industry PE 28.8

📊 CHALET is trading at ₹758, below both its 50 DMA (₹784) and 200 DMA (₹845), reflecting short-term and medium-term weakness. RSI at 45.3 indicates neutral-to-bearish momentum, while MACD at 4.47 shows a mild bullish crossover. Bollinger Bands suggest price near the lower band, signaling potential support. Volume (82,452) is below the weekly average (1,09,917), showing reduced participation. Overall, the stock is consolidating with weak momentum and limited upside unless volume improves.

💡 Optimal Entry Zone: ₹740–760 (near support levels).

📈 Exit Zone: ₹820–850 (resistance) with extended breakout potential toward ₹1,082 (52-week high).

🔎 Trend Status: Consolidating with mild bullish undertone; reversal possible if price sustains above 800–820 with stronger volume.

✅ Positive

  • EPS of ₹28.9 with profit growth potential.
  • PEG ratio of 0.43 indicates undervaluation relative to growth.
  • DII holdings increased (+0.58%), showing domestic institutional support.
  • Debt-to-equity ratio of 0.64 is manageable.

⚠️ Limitation

  • ROE (6.88%) and ROCE (11.9%) are modest compared to peers.
  • Price trading below both 50 DMA and 200 DMA signals weakness.
  • Volume below weekly average, showing reduced participation.
  • Dividend yield is very low at 0.13%.

📉 Company Negative News

  • Quarterly PAT declined from ₹168 Cr. to ₹127 Cr., showing short-term earnings weakness.
  • FII holdings decreased (-0.37%), reflecting reduced foreign investor confidence.

📈 Company Positive News

  • DII holdings increased (+0.58%), showing domestic institutional confidence.
  • Stock trading close to support levels, offering potential entry opportunity.

🏭 Industry

  • Industry PE is 28.8, slightly higher than CHALET’s PE of 26.2, suggesting fair valuation.
  • Hospitality sector benefits from rising tourism and business travel demand in India.

🔎 Conclusion

CHALET is consolidating with weak earnings and modest fundamentals, but undervaluation and domestic institutional support provide some cushion. Entry near ₹740–760 offers a safer setup, while exit near ₹820–850 is prudent unless momentum strengthens. Long-term investors should monitor earnings growth and foreign investor sentiment closely.

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