COLPAL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.2

📉 COLPAL is currently in a reversing phase, with weakening momentum indicators and price action below key moving averages.

📊 Technical Overview

• Trend Status: Reversing — price has declined from its 52-week high of ₹3,115 to ₹2,201, nearing its recent low of ₹2,151.
• Moving Averages: Price is below both 50 DMA (₹2,280) and 200 DMA (₹2,449), confirming bearish sentiment.
• RSI (47.3): Neutral zone, but trending lower, indicating weakening momentum.
• MACD (-9.40): Negative crossover supports continued bearish pressure.
• Bollinger Bands: Price near lower band, suggesting oversold conditions and potential short-term support.
• Volume: Above average (10.17L vs 6.27L), indicating increased selling activity.

📌 Entry & Exit Zones

• Support Zone: ₹2,150–₹2,180 — potential entry zone if reversal signals emerge.
• Resistance Zone: ₹2,280–₹2,320 — ideal for exit or partial profit booking.
• Breakout Level: ₹2,450 — crossing 200 DMA could signal trend recovery.

✅ Positive

• Exceptional ROCE (105%) and ROE (81.2%) reflect outstanding capital efficiency.
• EPS of ₹48.8 and consistent dividend yield (2.30%).
• Low debt-to-equity ratio (0.04) supports financial stability.
• Strong domestic institutional support (+2.61% DII holding change).

⚠️ Limitation

• Price trading below key moving averages with bearish MACD and weakening RSI.
• High P/E (45.2) and PEG ratio (4.50) suggest valuation concerns.
• Low 52-week index (5.22%) indicates underperformance relative to broader market.

📰 Company Negative News

• Decline in FII holdings (-3.23%) may reflect foreign investor caution.
• Quarterly profit contraction of 17.1% signals operational pressure.

🌟 Company Positive News

• Stable earnings with PAT of ₹328 Cr and strong return ratios.
• Domestic institutions increasing stake, signaling long-term confidence.

🏭 Industry

• Operates in FMCG and personal care, a defensive sector with stable demand and brand loyalty.
• Industry P/E (51.8) is higher than the stock’s, suggesting potential undervaluation.

🧾 Conclusion

• COLPAL is technically weak in the short term with bearish indicators and declining price action.
• Entry near ₹2,150–₹2,180 only if reversal signs strengthen; watch for breakout above ₹2,450.
• Long-term investors may hold for fundamentals and yield; short-term traders should remain cautious.