CHOLAHLDNG - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | CHOLAHLDNG | Market Cap | 29,220 Cr. | Current Price | 1,556 ₹ | High / Low | 2,299 ₹ |
| Stock P/E | 420 | Book Value | 72.2 ₹ | Dividend Yield | 0.08 % | ROCE | 6.26 % |
| ROE | 4.88 % | Face Value | 1.00 ₹ | DMA 50 | 1,577 ₹ | DMA 200 | 1,712 ₹ |
| Chg in FII Hold | -2.66 % | Chg in DII Hold | 2.54 % | PAT Qtr | 2.66 Cr. | PAT Prev Qtr | 27.2 Cr. |
| RSI | 50.6 | MACD | 9.63 | Volume | 1,31,262 | Avg Vol 1Wk | 2,33,944 |
| Low price | 1,305 ₹ | High price | 2,299 ₹ | PEG Ratio | 82.7 | Debt to equity | 0.00 |
| 52w Index | 25.3 % | Qtr Profit Var | 40.7 % | EPS | 3.70 ₹ | Industry PE | 25.5 |
📊 CHOLAHLDNG is trading at ₹1,556, slightly below its 50 DMA (₹1,577) and well below its 200 DMA (₹1,712), reflecting weak momentum. RSI at 50.6 indicates neutral consolidation, while MACD at 9.63 shows a mild bullish crossover. Bollinger Bands suggest price stabilizing near the mid-range. Volume (1,31,262) is below the weekly average (2,33,944), showing weak participation. Overall, the stock is consolidating with limited upside potential.
💡 Optimal Entry Zone: ₹1,520–1,560 (near support levels).
📈 Exit Zone: ₹1,680–1,700 (resistance) with extended breakout potential toward ₹2,299 (52-week high).
🔎 Trend Status: Consolidating with weak bias; reversal unlikely unless price sustains above 1,600–1,650 with stronger volume.
✅ Positive
- Debt-free balance sheet (Debt-to-equity: 0.00).
- Quarterly PAT growth variation of 40.7% despite weak absolute numbers.
- DII holdings increased (+2.54%), showing domestic institutional support.
⚠️ Limitation
- Extremely high PE of 420 compared to industry PE of 25.5, indicating severe overvaluation.
- EPS of ₹3.70 is very weak relative to price.
- ROCE (6.26%) and ROE (4.88%) show poor efficiency.
- PEG ratio of 82.7 suggests unsustainable valuation relative to growth.
- Price trading below 200 DMA signals medium-term weakness.
- Volume below weekly average, limiting momentum confirmation.
📉 Company Negative News
- Quarterly PAT dropped sharply from ₹27.2 Cr. to ₹2.66 Cr.
- FII holdings decreased (-2.66%), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased (+2.54%), reflecting domestic institutional support.
- Debt-free status provides financial stability.
🏭 Industry
- Industry PE is 25.5, far lower than CHOLAHLDNG’s PE of 420, highlighting extreme overvaluation.
- Financial holding sector remains supported by long-term investment demand but faces valuation risks.
🔎 Conclusion
CHOLAHLDNG is consolidating with weak fundamentals and extreme overvaluation despite being debt-free. Entry near ₹1,520–1,560 offers limited risk, while exit near ₹1,680–1,700 is advisable unless momentum strengthens. Long-term investors should avoid due to poor efficiency metrics, weak earnings, and unsustainable valuation.