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COROMANDEL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.5

Last Updated Time : 28 May 26, 07:38 pm

Technical Rating: 3.5

Stock Code COROMANDEL Market Cap 54,044 Cr. Current Price 1,832 ₹ High / Low 2,720 ₹
Stock P/E 25.7 Book Value 423 ₹ Dividend Yield 0.66 % ROCE 25.4 %
ROE 17.9 % Face Value 1.00 ₹ DMA 50 1,976 ₹ DMA 200 2,116 ₹
Chg in FII Hold -0.77 % Chg in DII Hold 1.50 % PAT Qtr 228 Cr. PAT Prev Qtr 530 Cr.
RSI 36.6 MACD -47.4 Volume 3,82,418 Avg Vol 1Wk 4,27,486
Low price 1,786 ₹ High price 2,720 ₹ PEG Ratio 21.8 Debt to equity 0.07
52w Index 4.90 % Qtr Profit Var -27.0 % EPS 68.1 ₹ Industry PE 16.3

📈 Chart & Trend Analysis: COROMANDEL is trading at ₹1,832, below both its 50 DMA (₹1,976) and 200 DMA (₹2,116), signaling technical weakness. RSI at 36.6 indicates bearish momentum nearing oversold territory. MACD at -47.4 confirms strong negative crossover. Bollinger Bands show price leaning toward the lower band, suggesting downside pressure with support near ₹1,800–₹1,820.

🔎 Momentum Signals: Current volume (3.82L) is slightly below the 1-week average (4.27L), reflecting reduced participation. Short-term momentum remains weak, with sellers dominating. A rebound is possible if support near ₹1,800 holds.

🎯 Entry Zone: ₹1,800–₹1,820 (support cluster)

🚪 Exit Zone: ₹1,950–₹1,980 (resistance near 50 DMA)

🛑 Stop-Loss: ₹1,770 (below recent support)

📊 Trend Status: Reversing to bearish bias; consolidation possible if price stabilizes around ₹1,800.


Positive

  • Strong ROCE (25.4%) and ROE (17.9%) highlight operational efficiency.
  • Low debt-to-equity (0.07) ensures financial stability.
  • EPS of ₹68.1 supports earnings strength.
  • DII holdings increased (+1.50%), showing domestic investor confidence.

Limitation

  • Trading below both 50 DMA and 200 DMA indicates technical weakness.
  • MACD negative (-47.4) confirms bearish momentum.
  • Quarterly PAT dropped sharply (₹228 Cr vs ₹530 Cr).
  • High PEG ratio (21.8) suggests stretched valuations.

Company Negative News

  • Decline in FII holdings (-0.77%) shows foreign investor caution.
  • Quarterly earnings volatility with sharp PAT decline.

Company Positive News

  • Strong fundamentals with low debt and consistent dividend yield (0.66%).
  • Operational efficiency reflected in ROCE and ROE metrics.

Industry

  • Industry P/E at 16.3 indicates COROMANDEL is trading at a premium (P/E 25.7).
  • Agribusiness sector remains cyclical, influenced by fertilizer demand and commodity prices.

Conclusion

⚡ COROMANDEL is showing bearish reversal signals with price below key moving averages and weak momentum indicators. Entry around ₹1,800–₹1,820 offers cautious accumulation, with exit targets at ₹1,950–₹1,980. Strong fundamentals support long-term stability, but near-term weakness and earnings volatility warrant defensive positioning.

Would you like me to extend this into a long-term investment outlook with holding strategies and sector benchmarking, or keep it focused as a short-term swing trade analysis?

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