COHANCE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | COHANCE | Market Cap | 11,730 Cr. | Current Price | 306 ₹ | High / Low | 1,250 ₹ |
| Stock P/E | 34.7 | Book Value | 115 ₹ | Dividend Yield | 0.00 % | ROCE | 16.0 % |
| ROE | 12.5 % | Face Value | 1.00 ₹ | DMA 50 | 366 ₹ | DMA 200 | 645 ₹ |
| Chg in FII Hold | -0.50 % | Chg in DII Hold | 0.76 % | PAT Qtr | 50.8 Cr. | PAT Prev Qtr | 94.3 Cr. |
| RSI | 43.2 | MACD | -17.3 | Volume | 5,44,590 | Avg Vol 1Wk | 8,78,332 |
| Low price | 267 ₹ | High price | 1,250 ₹ | PEG Ratio | -1.68 | Debt to equity | 0.05 |
| 52w Index | 4.03 % | Qtr Profit Var | -67.0 % | EPS | 9.90 ₹ | Industry PE | 27.6 |
📈 Chart & Trend: COHANCE is trading at ₹306, well below both its 50 DMA (₹366) and 200 DMA (₹645). This indicates strong short-term and medium-term weakness, with the stock consolidating near support levels.
📊 Momentum Indicators:
- RSI at 43.2 suggests mildly oversold conditions, potential for rebound.
- MACD at -17.3 shows bearish crossover, confirming short-term weakness.
- Bollinger Bands: Price near lower band, indicating possible mean reversion.
- Volume: Current volume (5.4 lakh) is lower than 1-week average (8.8 lakh), showing reduced participation.
🔑 Support & Resistance:
- Support zone: ₹290–₹300
- Resistance zone: ₹360–₹370 (near 50 DMA)
- Breakout resistance: ₹640–₹650 (near 200 DMA)
- Long-term support: ₹267
📌 Entry & Exit Zones:
- Entry: ₹290–₹306 (near support)
- Exit: ₹360–₹640 (resistance zone)
- Stop-loss: ₹280
📉 Trend Status: Strong bearish consolidation. Needs a breakout above ₹366–₹645 to confirm reversal and trend continuation.
Positive
- ROCE at 16% and ROE at 12.5% reflect moderate operational efficiency.
- Debt-to-equity ratio of 0.05 indicates negligible leverage.
- DII holdings increased by 0.76%, showing domestic investor confidence.
Limitation
- Stock trading well below both 50 DMA and 200 DMA indicates weakness.
- Quarterly PAT declined sharply (₹50.8 Cr vs ₹94.3 Cr), showing earnings pressure.
- FII holdings decreased by 0.50%, showing reduced foreign confidence.
- PEG ratio of -1.68 highlights poor growth relative to valuation.
- High P/E of 34.7 compared to industry PE of 27.6 indicates premium valuation.
Company Negative News
- No major recent negative news reported, but sharp earnings decline and reduced FII holdings are concerns.
Company Positive News
- Debt-free status strengthens financial stability.
- Domestic institutional inflows indicate growing confidence.
Industry
- Industry PE at 27.6 vs stock PE at 34.7 shows COHANCE trades at a premium.
- Chemicals and specialty sector supported by demand in pharma and industrial applications, though cyclical risks remain.
Conclusion
⚡ COHANCE is in a bearish consolidation phase, trading well below key moving averages. Entry near ₹290–₹306 offers margin of safety, with exit targets around ₹360–₹640. Strong fundamentals and low debt support long-term prospects, but sharp earnings decline, premium valuation, and weak momentum indicators pose short-term risks.
Would you like me to extend this into a peer benchmarking overlay comparing COHANCE with other specialty chemical players (like Aarti Industries, Atul Ltd, and Deepak Nitrite) to highlight relative strength, valuation gaps, and sector rotation opportunities?