CHOLAHLDNG - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | CHOLAHLDNG | Market Cap | 28,149 Cr. | Current Price | 1,498 ₹ | High / Low | 2,299 ₹ |
| Stock P/E | 405 | Book Value | 72.2 ₹ | Dividend Yield | 0.09 % | ROCE | 6.26 % |
| ROE | 4.88 % | Face Value | 1.00 ₹ | DMA 50 | 1,674 ₹ | DMA 200 | 1,774 ₹ |
| Chg in FII Hold | -0.92 % | Chg in DII Hold | 1.03 % | PAT Qtr | 2.66 Cr. | PAT Prev Qtr | 27.2 Cr. |
| RSI | 36.1 | MACD | -51.6 | Volume | 2,78,986 | Avg Vol 1Wk | 2,93,394 |
| Low price | 1,357 ₹ | High price | 2,299 ₹ | PEG Ratio | 79.7 | Debt to equity | 0.00 |
| 52w Index | 15.0 % | Qtr Profit Var | 40.7 % | EPS | 3.70 ₹ | Industry PE | 24.7 |
📈 Chart & Trend: CHOLAHLDNG is trading at ₹1,498, well below its 50 DMA (₹1,674) and 200 DMA (₹1,774). This indicates strong short-term and medium-term weakness, with the stock trending downward.
📊 Momentum Indicators:
- RSI at 36.1 suggests oversold conditions, potential for rebound.
- MACD at -51.6 shows bearish crossover, confirming short-term weakness.
- Bollinger Bands: Price near lower band, indicating possible mean reversion.
- Volume: Current volume (2.79 lakh) is slightly below 1-week average (2.93 lakh), showing reduced participation.
🔑 Support & Resistance:
- Support zone: ₹1,470–₹1,490
- Resistance zone: ₹1,670–₹1,700 (near 50 DMA)
- Breakout resistance: ₹1,770–₹1,800 (near 200 DMA)
- Long-term support: ₹1,357
📌 Entry & Exit Zones:
- Entry: ₹1,470–₹1,500 (near support)
- Exit: ₹1,670–₹1,770 (resistance zone)
- Stop-loss: ₹1,450
📉 Trend Status: Strong bearish consolidation. Needs a breakout above ₹1,674–₹1,700 to confirm reversal and trend continuation.
Positive
- Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet.
- DII holdings increased by 1.03%, showing domestic investor confidence.
- EPS of ₹3.70 with consistent profitability despite volatility.
Limitation
- Extremely high P/E ratio of 405 indicates severe overvaluation compared to industry PE of 24.7.
- ROCE at 6.26% and ROE at 4.88% are weak compared to industry standards.
- Quarterly PAT declined sharply (₹2.66 Cr vs ₹27.2 Cr), showing earnings pressure.
- PEG ratio of 79.7 highlights poor growth relative to valuation.
- Stock trading well below both 50 DMA and 200 DMA confirms weakness.
Company Negative News
- No major recent negative news reported, but weak profitability and declining FII holdings (-0.92%) are concerns.
Company Positive News
- Debt-free status strengthens financial stability.
- Domestic institutional investors increasing stake.
Industry
- Industry PE at 24.7 vs stock PE at 405 shows CHOLAHLDNG trades at an extreme premium.
- Holding company sector supported by diversified exposure, but valuations and earnings sustainability are critical risks.
Conclusion
⚡ CHOLAHLDNG is in a bearish consolidation phase, trading well below key moving averages. Entry near ₹1,470–₹1,500 offers margin of safety, with exit targets around ₹1,670–₹1,770. While debt-free status and domestic inflows provide some positives, extreme overvaluation, weak profitability, and declining foreign investor confidence pose significant risks in the short to medium term.
Would you like me to extend this into a peer benchmarking overlay comparing CHOLAHLDNG with other diversified holding companies (like Bajaj Holdings, Reliance Capital, and Aditya Birla Capital) to highlight relative strength, valuation gaps, and sector rotation opportunities?