COFORGE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | COFORGE | Market Cap | 51,382 Cr. | Current Price | 1,196 ₹ | High / Low | 1,994 ₹ |
| Stock P/E | 70.7 | Book Value | 179 ₹ | Dividend Yield | 1.27 % | ROCE | 13.9 % |
| ROE | 11.3 % | Face Value | 2.00 ₹ | DMA 50 | 1,272 ₹ | DMA 200 | 1,506 ₹ |
| Chg in FII Hold | -11.2 % | Chg in DII Hold | -9.25 % | PAT Qtr | 133 Cr. | PAT Prev Qtr | 332 Cr. |
| RSI | 45.8 | MACD | -4.66 | Volume | 14,64,606 | Avg Vol 1Wk | 14,71,474 |
| Low price | 1,008 ₹ | High price | 1,994 ₹ | PEG Ratio | -9.63 | Debt to equity | 0.08 |
| 52w Index | 19.0 % | Qtr Profit Var | 25.5 % | EPS | 20.3 ₹ | Industry PE | 21.6 |
📊 COFORGE is trading at ₹1,196, below both its 50 DMA (₹1,272) and 200 DMA (₹1,506), reflecting short-term and medium-term weakness. RSI at 45.8 indicates neutral-to-bearish momentum, while MACD at -4.66 shows a bearish crossover. Bollinger Bands suggest price consolidating near the lower band, signaling downside risk. Volume (14,64,606) is in line with the weekly average (14,71,474), showing steady but uninspired participation. Overall, the stock is consolidating with bearish undertone.
💡 Optimal Entry Zone: ₹1,150–1,180 (near support levels).
📈 Exit Zone: ₹1,280–1,300 (resistance near 50 DMA), with extended breakout potential toward ₹1,500 if momentum reverses.
🔎 Trend Status: Consolidating with bearish bias; reversal unlikely unless price sustains above 1,300 with stronger volume.
✅ Positive
- EPS of ₹20.3 provides earnings visibility.
- Dividend yield of 1.27% offers income support.
- Debt-to-equity ratio of 0.08 indicates low leverage.
⚠️ Limitation
- Extremely high PE of 70.7 compared to industry PE of 21.6, suggesting steep overvaluation.
- Quarterly PAT declined sharply from ₹332 Cr. to ₹133 Cr.
- Negative PEG ratio (-9.63) reflects weak growth prospects.
- Price below both 50 DMA and 200 DMA signals technical weakness.
📉 Company Negative News
- Sharp decline in quarterly PAT highlights earnings weakness.
- FII holdings decreased (-11.2%) and DII holdings decreased (-9.25%), showing reduced institutional confidence.
📈 Company Positive News
- Dividend yield of 1.27% provides steady income for investors.
- Low debt-to-equity ratio supports financial stability.
🏭 Industry
- Industry PE is 21.6, far lower than COFORGE’s PE of 70.7, highlighting valuation concerns.
- IT services sector remains supported by digital transformation demand, but earnings volatility is a risk.
🔎 Conclusion
COFORGE is consolidating with weak technical and fundamental signals. Entry near ₹1,150–1,180 offers limited opportunity, while exit near ₹1,280–1,300 is prudent unless momentum strengthens. Long-term investors should be cautious due to overvaluation, declining profits, and reduced institutional sentiment. Short-term traders may only consider speculative positions with strict risk management.