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COFORGE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | COFORGE | Market Cap | 55,807 Cr. | Current Price | 1,662 ₹ | High / Low | 1,994 ₹ |
| Stock P/E | 76.8 | Book Value | 179 ₹ | Dividend Yield | 0.95 % | ROCE | 13.9 % |
| ROE | 11.3 % | Face Value | 2.00 ₹ | DMA 50 | 1,730 ₹ | DMA 200 | 1,712 ₹ |
| Chg in FII Hold | 0.44 % | Chg in DII Hold | -1.20 % | PAT Qtr | 133 Cr. | PAT Prev Qtr | 332 Cr. |
| RSI | 42.8 | MACD | -24.6 | Volume | 8,08,269 | Avg Vol 1Wk | 16,80,589 |
| Low price | 1,191 ₹ | High price | 1,994 ₹ | PEG Ratio | -10.5 | Debt to equity | 0.08 |
| 52w Index | 58.7 % | Qtr Profit Var | 25.5 % | EPS | 20.3 ₹ | Industry PE | 24.2 |
📊 Technical Analysis
- Chart Patterns: COFORGE has corrected from its 52-week high of 1,994 ₹ and is consolidating near 1,662 ₹.
- Moving Averages: Price (1,662 ₹) is below both 50 DMA (1,730 ₹) and 200 DMA (1,712 ₹), confirming bearish momentum.
- RSI: At 42.8, neutral to weak — closer to oversold territory.
- MACD: Negative (-24.6), reinforcing bearish sentiment.
- Bollinger Bands: Price near lower band, suggesting possible support zone.
- Volume Trends: Current volume (8.08 lakh) below 1-week average (16.8 lakh), showing weak participation.
📈 Momentum & Signals
- Short-term Momentum: Weak due to negative MACD and RSI below 50.
- Support Levels: 1,640 ₹ (near-term), 1,600 ₹ (major support).
- Resistance Levels: 1,700 ₹ (short-term), 1,730 ₹ (50 DMA).
- Optimal Entry Zone: 1,640–1,660 ₹ (close to support).
- Optimal Exit Zone: 1,700–1,730 ₹ (near resistance).
- Trend Status: Consolidating with bearish bias.
✅ Positive
- EPS of 20.3 ₹ supports earnings visibility.
- ROCE (13.9%) and ROE (11.3%) show moderate efficiency.
- FII holdings increased (+0.44%), showing foreign investor confidence.
- Debt-to-equity ratio of 0.08 indicates low leverage.
⚠️ Limitation
- P/E (76.8) far above industry PE (24.2), suggesting extreme overvaluation.
- PEG ratio (-10.5) indicates poor valuation relative to growth.
- Stock trading below both 50 DMA and 200 DMA, signaling weakness.
📉 Company Negative News
- DII holdings decreased (-1.20%), showing reduced domestic institutional confidence.
- Quarterly PAT declined (133 Cr vs 332 Cr), highlighting earnings pressure.
📈 Company Positive News
- Quarterly profit variation (+25.5%) shows sequential improvement despite weak YoY numbers.
- FII inflows reflect foreign investor interest.
🏭 Industry
- IT services sector supported by global digital transformation demand.
- Industry PE at 24.2 vs stock PE at 76.8 — stock trades at extreme premium valuation.
🔎 Conclusion
- COFORGE is consolidating with short-term bearish signals and extreme valuation concerns.
- Best entry near 1,640–1,660 ₹, exit near 1,700–1,730 ₹ unless breakout above 1,730 ₹ occurs.
- Medium-term outlook cautious due to high valuation and earnings slowdown, though sector demand and low debt provide support.