CROMPTON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | CROMPTON | Market Cap | 17,538 Cr. | Current Price | 272 ₹ | High / Low | 364 ₹ |
| Stock P/E | 35.6 | Book Value | 56.1 ₹ | Dividend Yield | 1.10 % | ROCE | 20.1 % |
| ROE | 16.5 % | Face Value | 2.00 ₹ | DMA 50 | 252 ₹ | DMA 200 | 276 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.38 % | PAT Qtr | 112 Cr. | PAT Prev Qtr | 85.3 Cr. |
| RSI | 63.2 | MACD | 6.55 | Volume | 76,37,855 | Avg Vol 1Wk | 1,03,49,312 |
| Low price | 217 ₹ | High price | 364 ₹ | PEG Ratio | -20.6 | Debt to equity | 0.05 |
| 52w Index | 37.4 % | Qtr Profit Var | 0.17 % | EPS | 7.21 ₹ | Industry PE | 46.7 |
📊 CROMPTON is trading above its 50 DMA (252 ₹) but slightly below the 200 DMA (276 ₹), indicating short-term bullishness with medium-term caution. RSI at 63.2 shows strong momentum nearing overbought levels, while MACD at 6.55 confirms bullish crossover. Current volume (76,37,855) is lower than average (1,03,49,312), suggesting reduced participation. Bollinger Bands show price near upper mid-range, pointing to consolidation with bullish bias.
🎯 Entry Zone: 265 ₹ – 272 ₹ (support near 50 DMA)
💰 Exit Zone: 285 ₹ – 295 ₹ (resistance near 290–295 ₹)
🔄 Trend Status: Consolidating with bullish undertones
Positive
- Strong ROCE (20.1%) and ROE (16.5%) highlight operational efficiency.
- Low debt-to-equity (0.05) ensures financial stability.
- Quarterly PAT growth (112 Cr vs 85.3 Cr) reflects improving profitability.
- Price above 50 DMA supports short-term bullish bias.
Limitation
- Trading below 200 DMA indicates medium-term weakness.
- High P/E ratio (35.6) compared to industry average (46.7) suggests valuation pressure.
- PEG ratio (-20.6) highlights poor growth-adjusted valuation.
- Volume below average indicates weaker participation in current rally.
Company Negative News
- No major negative news reported; valuation and growth concerns remain key risks.
Company Positive News
- Consistent profit growth and dividend yield of 1.10% provide investor confidence.
- DII holdings increased (+0.38%), showing domestic institutional support.
Industry
- Industry P/E at 46.7 is higher than CROMPTON’s 35.6, suggesting relative undervaluation.
- Consumer electricals sector remains resilient with steady demand for appliances and lighting solutions.
Conclusion
⚡ CROMPTON is consolidating near support levels with bullish undertones. Entry around 265–272 ₹ offers favorable positioning, with exit targets at 285–295 ₹. Strong fundamentals support stability, but weak growth metrics and valuation concerns warrant cautious accumulation.
This is the short-term technical view. If you’d like, I can also prepare a long-term investment outlook for CROMPTON, focusing on dividend sustainability, sector benchmarking, and growth projections.