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CHENNPETRO - Technical Analysis with Chart Patterns & Indicators

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Rating: 4.4

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

Technical Rating: 4.4

Stock Code CHENNPETRO Market Cap 16,802 Cr. Current Price 1,128 ₹ High / Low 1,160 ₹
Stock P/E 5.49 Book Value 725 ₹ Dividend Yield 0.71 % ROCE 35.6 %
ROE 32.7 % Face Value 10.0 ₹ DMA 50 988 ₹ DMA 200 875 ₹
Chg in FII Hold -0.28 % Chg in DII Hold 1.09 % PAT Qtr 1,400 Cr. PAT Prev Qtr 987 Cr.
RSI 62.8 MACD 33.1 Volume 45,10,501 Avg Vol 1Wk 56,83,309
Low price 585 ₹ High price 1,160 ₹ PEG Ratio -1.18 Debt to equity 0.18
52w Index 94.6 % Qtr Profit Var 211 % EPS 206 ₹ Industry PE 15.7

📊 CHENNPETRO is trading at ₹1,128, well above its 50 DMA (₹988) and 200 DMA (₹875), confirming strong bullish momentum. RSI at 62.8 indicates near-overbought conditions, while MACD at 33.1 shows a powerful bullish crossover. Bollinger Bands suggest price leaning toward the upper band, signaling strength but also caution near resistance. Volume (45,10,501) is below the weekly average (56,83,309), showing slightly weaker participation despite strong price action. Overall, the stock is trending upward with strong momentum.

💡 Optimal Entry Zone: ₹1,090–1,120 (near support and breakout levels).

📈 Exit Zone: ₹1,150–1,160 (resistance and 52-week high).

🔎 Trend Status: Strongly trending upward; continuation likely unless RSI overheats or volume weakens further.

✅ Positive

  • EPS of ₹206 with quarterly PAT growth of 211% highlights exceptional earnings momentum.
  • ROCE of 35.6% and ROE of 32.7% reflect strong efficiency and profitability.
  • Stock P/E of 5.49 is far below industry PE of 15.7, suggesting undervaluation.
  • DII holdings increased (+1.09%), showing strong domestic institutional support.
  • Debt-to-equity ratio of 0.18 indicates low leverage.

⚠️ Limitation

  • PEG ratio of -1.18 indicates valuation concerns despite strong earnings.
  • FII holdings decreased (-0.28%), showing reduced foreign investor confidence.
  • Volume below weekly average, limiting confirmation of momentum strength.
  • Dividend yield modest at 0.71%.

📉 Company Negative News

  • Reduced foreign institutional confidence with FII holdings down.
  • PEG ratio negative, raising valuation concerns despite strong fundamentals.

📈 Company Positive News

  • Quarterly PAT surged from ₹987 Cr. to ₹1,400 Cr., reflecting strong operational momentum.
  • DII holdings increased significantly (+1.09%), showing domestic institutional support.

🏭 Industry

  • Industry PE is 15.7, much higher than CHENNPETRO’s PE of 5.49, suggesting undervaluation.
  • Oil refining and petrochemical sector benefits from rising demand and favorable commodity cycles.

🔎 Conclusion

CHENNPETRO is a strong swing trade candidate with undervaluation, high EPS, and exceptional profit growth. Entry near ₹1,090–1,120 offers a favorable setup, while exit near ₹1,150–1,160 is prudent unless momentum drives a breakout. Long-term investors should monitor valuation metrics and foreign investor sentiment closely.

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