CREDITACC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | CREDITACC | Market Cap | 19,024 Cr. | Current Price | 1,188 ₹ | High / Low | 1,497 ₹ |
| Stock P/E | 39.2 | Book Value | 448 ₹ | Dividend Yield | 0.00 % | ROCE | 9.55 % |
| ROE | 7.86 % | Face Value | 10.0 ₹ | DMA 50 | 1,257 ₹ | DMA 200 | 1,267 ₹ |
| Chg in FII Hold | -0.61 % | Chg in DII Hold | -0.10 % | PAT Qtr | 252 Cr. | PAT Prev Qtr | 126 Cr. |
| RSI | 43.3 | MACD | -30.4 | Volume | 3,39,057 | Avg Vol 1Wk | 2,64,392 |
| Low price | 860 ₹ | High price | 1,497 ₹ | PEG Ratio | 2.68 | Debt to equity | 2.81 |
| 52w Index | 51.5 % | Qtr Profit Var | 353 % | EPS | 30.3 ₹ | Industry PE | 23.8 |
📊 Chart & Trend Analysis: CREDITACC is trading at ₹1,188, below both its 50 DMA (₹1,257) and 200 DMA (₹1,267), indicating bearish momentum. RSI at 43.3 suggests the stock is approaching oversold territory but not yet at reversal strength. MACD at -30.4 confirms negative momentum. Bollinger Bands show price leaning towards the lower band, with support near ₹1,160–1,170.
📈 Momentum Signals: Current volume (3.39 lakh) is higher than the 1-week average (2.64 lakh), showing strong participation. However, weak RSI and negative MACD reinforce bearish bias.
💡 Entry Zone: Optimal entry around ₹1,160–1,180 (near support).
🚪 Exit Zone: Resistance seen at ₹1,257 (50 DMA) and ₹1,267 (200 DMA). Profit booking advised near these levels.
🔎 Trend Status: The stock is currently consolidating with bearish bias. A breakout above ₹1,257 would indicate recovery momentum.
Positive
- Strong EPS of ₹30.3 supports earnings visibility.
- Quarterly PAT doubled (₹252 Cr vs ₹126 Cr), showing operational improvement.
- 52-week index gain of 51.5% highlights long-term strength.
Limitation
- High P/E (39.2) compared to industry average (23.8) suggests overvaluation.
- Low ROCE (9.55%) and ROE (7.86%) indicate weak capital efficiency.
- Debt-to-equity ratio of 2.81 shows high leverage risk.
- PEG ratio of 2.68 reflects expensive valuation relative to growth.
Company Negative News
- Decline in FII holding (-0.61%) and DII holding (-0.10%) shows reduced institutional confidence.
- High leverage raises financial risk in volatile markets.
Company Positive News
- Quarterly profit growth (+353% YoY) indicates strong turnaround momentum.
Industry
- Industry P/E at 23.8 is lower than CREDITACC’s P/E, suggesting peers may be more attractively valued.
- NBFC sector remains vital for credit expansion, but faces margin pressures from rising borrowing costs.
Conclusion
⚖️ CREDITACC shows strong earnings growth but faces valuation concerns and high leverage. Short-term consolidation with bearish bias is evident. Entry near ₹1,160–1,180 offers margin of safety, while exits should be considered near ₹1,257–1,267. Long-term investors may hold for growth potential, but traders should wait for confirmation above 50 DMA before aggressive buying.
Would you like me to extend this into a peer benchmarking overlay (e.g., comparing CREDITACC with other NBFCs like Bajaj Finance, Muthoot Finance, and Shriram Finance) to highlight relative strength and sector rotation opportunities?