⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CROMPTON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | CROMPTON | Market Cap | 14,524 Cr. | Current Price | 226 ₹ | High / Low | 373 ₹ |
| Stock P/E | 29.5 | Book Value | 56.1 ₹ | Dividend Yield | 1.36 % | ROCE | 20.1 % |
| ROE | 16.5 % | Face Value | 2.00 ₹ | DMA 50 | 252 ₹ | DMA 200 | 296 ₹ |
| Chg in FII Hold | -5.01 % | Chg in DII Hold | 4.49 % | PAT Qtr | 85.3 Cr. | PAT Prev Qtr | 125 Cr. |
| RSI | 32.2 | MACD | -9.39 | Volume | 31,56,857 | Avg Vol 1Wk | 41,89,542 |
| Low price | 217 ₹ | High price | 373 ₹ | PEG Ratio | -17.0 | Debt to equity | 0.05 |
| 52w Index | 5.25 % | Qtr Profit Var | -30.8 % | EPS | 7.42 ₹ | Industry PE | 48.4 |
📊 Technical Analysis
- Chart Patterns: CROMPTON is trading at 226 ₹, well below its high of 373 ₹, showing a clear downtrend with weak recovery attempts.
- Moving Averages: Current price is below both 50 DMA (252 ₹) and 200 DMA (296 ₹), confirming bearish momentum.
- RSI: At 32.2, the stock is approaching oversold territory, suggesting limited downside but weak strength.
- MACD: Negative (-9.39), reinforcing bearish crossover and weak momentum.
- Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.
- Volume Trends: Current volume (31.56L) is lower than 1-week average (41.89L), showing reduced participation and lack of strong buying interest.
📈 Momentum & Signals
- Short-Term Momentum: Weak, with potential for a relief rally if RSI-driven bounce occurs.
- Support Zones: 217–220 ₹ (strong support), 200 ₹ (psychological support).
- Resistance Zones: 252 ₹ (50 DMA), 270 ₹ (intermediate resistance), 296 ₹ (200 DMA).
- Optimal Entry: Around 220–225 ₹ if support holds.
- Optimal Exit: 250–270 ₹ range, unless breakout above 296 ₹ confirms reversal.
- Trend Status: Currently trending downward with oversold signals; possible consolidation before reversal attempt.
✅ Positive
- Strong ROCE (20.1%) and ROE (16.5%) indicate efficient capital use.
- Low debt-to-equity (0.05) ensures financial stability.
- DII holdings increased significantly (+4.49%), showing domestic institutional support.
- Dividend yield of 1.36% provides income support.
⚠️ Limitation
- Stock P/E (29.5) is lower than industry PE (48.4), but PEG ratio (-17.0) indicates poor valuation relative to growth.
- Quarterly profit declined (-30.8%), showing earnings pressure.
- Trading below both 50 DMA and 200 DMA confirms weak technical structure.
- EPS (7.42 ₹) is modest compared to peers.
📉 Company Negative News
- FII holdings declined sharply (-5.01%), showing reduced foreign investor confidence.
- PAT dropped from 125 Cr. to 85.3 Cr., reflecting earnings slowdown.
📈 Company Positive News
- DII holdings increased (+4.49%), showing strong domestic support.
- Dividend yield of 1.36% adds investor appeal.
- Strong ROCE and ROE highlight operational efficiency despite earnings decline.
🏭 Industry
- Industry P/E is 48.4, higher than CROMPTON’s 29.5, suggesting relative undervaluation.
- Consumer electricals sector remains competitive, with demand linked to housing and infrastructure growth.
📝 Conclusion
- CROMPTON is fundamentally stable but technically weak in the short term.
- Stock is oversold and may see a relief rally if support near 220 ₹ holds.
- Best strategy: Accumulate cautiously near 220–225 ₹ with exit around 250–270 ₹ unless breakout above 296 ₹ confirms reversal.