CHOLAFIN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | CHOLAFIN | Market Cap | 1,33,210 Cr. | Current Price | 1,563 ₹ | High / Low | 1,832 ₹ |
| Stock P/E | 25.5 | Book Value | 357 ₹ | Dividend Yield | 0.13 % | ROCE | 9.70 % |
| ROE | 19.3 % | Face Value | 2.00 ₹ | DMA 50 | 1,562 ₹ | DMA 200 | 1,590 ₹ |
| Chg in FII Hold | -1.69 % | Chg in DII Hold | 2.37 % | PAT Qtr | 1,641 Cr. | PAT Prev Qtr | 1,288 Cr. |
| RSI | 53.0 | MACD | 8.18 | Volume | 80,20,143 | Avg Vol 1Wk | 31,89,329 |
| Low price | 1,299 ₹ | High price | 1,832 ₹ | PEG Ratio | 1.02 | Debt to equity | 6.94 |
| 52w Index | 49.5 % | Qtr Profit Var | 29.5 % | EPS | 61.3 ₹ | Industry PE | 18.2 |
📊 CHOLAFIN is trading at ₹1,563, right at its 50 DMA (₹1,562) but slightly below its 200 DMA (₹1,590), reflecting short-term support but medium-term resistance. RSI at 53.0 indicates neutral momentum, while MACD at 8.18 shows a mild bullish crossover. Bollinger Bands suggest price consolidating in the mid-range. Volume (80,20,143) is significantly above the weekly average (31,89,329), confirming strong participation. Overall, the stock is consolidating with bullish undertone.
💡 Optimal Entry Zone: ₹1,550–1,570 (near 50 DMA support).
📈 Exit Zone: ₹1,700–1,720 (resistance near 200 DMA), with extended breakout potential toward ₹1,832 (52-week high).
🔎 Trend Status: Consolidating with mild bullish bias; momentum requires sustained volume and confirmation above 200 DMA.
✅ Positive
- EPS of ₹61.3 and quarterly PAT growth of 29.5% highlight earnings strength.
- ROE of 19.3% reflects strong shareholder returns.
- PEG ratio of 1.02 suggests fair valuation relative to growth.
- DII holdings increased (+2.37%), showing strong domestic institutional support.
- Volume significantly above average confirms active buying interest.
⚠️ Limitation
- High debt-to-equity ratio of 6.94 raises leverage risk.
- ROCE at 9.70% is modest compared to peers.
- Price below 200 DMA signals medium-term weakness.
- FII holdings decreased (-1.69%), showing reduced foreign investor confidence.
- Dividend yield is very low at 0.13%.
📉 Company Negative News
- Reduced foreign institutional confidence with FII holdings down.
📈 Company Positive News
- Quarterly PAT improved from ₹1,288 Cr. to ₹1,641 Cr.
- DII holdings increased significantly (+2.37%), reflecting strong domestic support.
🏭 Industry
- Industry PE is 18.2, lower than CHOLAFIN’s PE of 25.5, suggesting premium valuation.
- NBFC sector remains supported by credit demand and financial inclusion initiatives.
🔎 Conclusion
CHOLAFIN is consolidating with mild bullish signals. Entry near ₹1,550–1,570 offers a favorable setup, while exit near ₹1,700–1,720 is prudent unless momentum drives a breakout toward ₹1,832. Long-term investors benefit from strong ROE and earnings growth, but high leverage and reduced foreign interest warrant caution.