COROMANDEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | COROMANDEL | Market Cap | 59,630 Cr. | Current Price | 2,023 ₹ | High / Low | 2,720 ₹ |
| Stock P/E | 27.5 | Book Value | 410 ₹ | Dividend Yield | 0.59 % | ROCE | 24.6 % |
| ROE | 17.5 % | Face Value | 1.00 ₹ | DMA 50 | 2,191 ₹ | DMA 200 | 2,207 ₹ |
| Chg in FII Hold | -0.72 % | Chg in DII Hold | 0.91 % | PAT Qtr | 530 Cr. | PAT Prev Qtr | 816 Cr. |
| RSI | 38.1 | MACD | -73.7 | Volume | 1,74,491 | Avg Vol 1Wk | 2,81,963 |
| Low price | 1,855 ₹ | High price | 2,720 ₹ | PEG Ratio | 3.45 | Debt to equity | 0.05 |
| 52w Index | 19.4 % | Qtr Profit Var | 0.86 % | EPS | 76.1 ₹ | Industry PE | 17.9 |
📊 Chart & Trend Analysis: COROMANDEL is trading at ₹2,023, below both its 50 DMA (₹2,191) and 200 DMA (₹2,207), indicating bearish momentum. RSI at 38.1 suggests the stock is nearing oversold territory. MACD at -73.7 confirms strong negative momentum. Bollinger Bands show price leaning towards the lower band, with support near ₹1,855.
📈 Momentum Signals: Current volume (1.74 lakh) is lower than the 1-week average (2.81 lakh), showing reduced participation. Weak RSI and negative MACD reinforce bearish bias, though oversold conditions may trigger a short-term bounce.
💡 Entry Zone: Optimal entry around ₹1,880–1,950 (near support).
🚪 Exit Zone: Resistance seen at ₹2,191 (50 DMA) and ₹2,207 (200 DMA). Profit booking advised near these levels.
🔎 Trend Status: The stock is currently consolidating with bearish bias. A breakout above ₹2,191 would indicate recovery momentum.
Positive
- Strong ROCE (24.6%) and ROE (17.5%) reflect efficient capital use.
- Debt-to-equity ratio of 0.05 shows financial stability.
- EPS of ₹76.1 supports earnings visibility.
- Large market cap (₹59,630 Cr) adds institutional credibility.
Limitation
- Stock P/E (27.5) is higher than industry average (17.9), suggesting overvaluation.
- Trading below both 50 DMA and 200 DMA highlights weak technical strength.
- PEG ratio of 3.45 indicates expensive valuation relative to growth.
Company Negative News
- Decline in FII holding (-0.72%) shows reduced foreign investor confidence.
- PAT dropped significantly (₹530 Cr vs ₹816 Cr), indicating margin pressure.
Company Positive News
- DII holding increased (+0.91%), showing domestic institutional support.
- Quarterly profit variation (+0.86%) indicates stabilization after prior decline.
Industry
- Industry P/E at 17.9 is lower than COROMANDEL’s P/E, suggesting peers may be more attractively valued.
- Agrochemicals and fertilizers sector remains vital, supported by demand for crop protection and nutrient solutions.
Conclusion
⚖️ COROMANDEL shows strong fundamentals (low debt, healthy ROE/ROCE) but weak technical momentum. Short-term consolidation with bearish bias is evident. Entry near ₹1,880–1,950 offers margin of safety, while exits should be considered near ₹2,191–2,207. Long-term investors may hold for sector relevance and strong fundamentals, but traders should wait for confirmation above 50 DMA before aggressive buying.
Would you like me to extend this into a basket overlay with peer benchmarking (e.g., comparing COROMANDEL with UPL, Rallis India, and other agrochemical/fertilizer stocks) to highlight relative strength and sector rotation opportunities?