COHANCE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | COHANCE | Market Cap | 18,488 Cr. | Current Price | 483 ₹ | High / Low | 1,180 ₹ |
| Stock P/E | 54.7 | Book Value | 115 ₹ | Dividend Yield | 0.00 % | ROCE | 16.0 % |
| ROE | 12.5 % | Face Value | 1.00 ₹ | DMA 50 | 367 ₹ | DMA 200 | 576 ₹ |
| Chg in FII Hold | -0.42 % | Chg in DII Hold | 0.22 % | PAT Qtr | 50.8 Cr. | PAT Prev Qtr | 94.3 Cr. |
| RSI | 73.8 | MACD | 37.0 | Volume | 1,32,56,155 | Avg Vol 1Wk | 1,99,12,580 |
| Low price | 267 ₹ | High price | 1,180 ₹ | PEG Ratio | -2.65 | Debt to equity | 0.05 |
| 52w Index | 23.7 % | Qtr Profit Var | -67.0 % | EPS | 9.90 ₹ | Industry PE | 30.1 |
📊 COHANCE is trading at ₹483, above its 50 DMA (₹367) but below its 200 DMA (₹576), reflecting strong short-term momentum but medium-term weakness. RSI at 73.8 indicates overbought conditions, while MACD at 37.0 confirms a bullish crossover. Bollinger Bands suggest price near the upper band, signaling strength but risk of correction. Volume (1,32,56,155) is below the weekly average (1,99,12,580), showing reduced participation despite price strength. Overall, the stock is trending upward short-term but faces fundamental weakness.
💡 Optimal Entry Zone: ₹460–480 (near support levels).
📈 Exit Zone: ₹500–520 (resistance) with extended breakout potential toward ₹600–650 if momentum sustains.
🔎 Trend Status: Trending upward short-term; risk of reversal due to overbought RSI and weak earnings.
✅ Positive
- ROCE at 16.0% and ROE at 12.5% show moderate efficiency.
- Debt-to-equity ratio of 0.05 indicates low leverage.
- Price trading above 50 DMA confirms short-term strength.
- DII holdings increased (+0.22%), showing domestic institutional support.
⚠️ Limitation
- Extremely high PE of 54.7 compared to industry PE of 30.1, suggesting overvaluation.
- PEG ratio of -2.65 highlights poor growth prospects.
- Quarterly PAT declined sharply from ₹94.3 Cr. to ₹50.8 Cr. (-67%).
- EPS of ₹9.90 is weak relative to price.
- RSI at 73.8 indicates overbought conditions, risk of correction.
- Volume below weekly average limits momentum confirmation.
📉 Company Negative News
- Sharp decline in quarterly PAT (-67%) highlights earnings weakness.
- FII holdings decreased (-0.42%), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased (+0.22%), reflecting domestic institutional support.
- Strong short-term technical momentum supported by MACD crossover.
🏭 Industry
- Industry PE is 30.1, lower than COHANCE’s PE of 54.7, highlighting premium valuation.
- Chemicals and specialty materials sector benefits from industrial demand but faces margin pressures.
🔎 Conclusion
COHANCE is a speculative swing trade candidate with strong short-term momentum but weak fundamentals and overvaluation. Entry near ₹460–480 offers a tactical setup, while exit near ₹500–520 is prudent unless momentum drives a breakout toward ₹600+. Long-term investors should avoid until earnings stabilize and valuation improves.