CROMPTON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | CROMPTON | Market Cap | 16,166 Cr. | Current Price | 251 ₹ | High / Low | 368 ₹ |
| Stock P/E | 32.8 | Book Value | 56.1 ₹ | Dividend Yield | 1.20 % | ROCE | 20.1 % |
| ROE | 16.5 % | Face Value | 2.00 ₹ | DMA 50 | 253 ₹ | DMA 200 | 285 ₹ |
| Chg in FII Hold | -5.01 % | Chg in DII Hold | 4.49 % | PAT Qtr | 112 Cr. | PAT Prev Qtr | 85.3 Cr. |
| RSI | 48.4 | MACD | -1.77 | Volume | 16,55,472 | Avg Vol 1Wk | 21,84,293 |
| Low price | 217 ₹ | High price | 368 ₹ | PEG Ratio | -19.0 | Debt to equity | 0.05 |
| 52w Index | 22.3 % | Qtr Profit Var | 0.17 % | EPS | 7.21 ₹ | Industry PE | 43.3 |
📊 Chart & Trend Analysis: CROMPTON is trading at ₹251, slightly below its 50 DMA (₹253) and well below its 200 DMA (₹285), indicating weak momentum. RSI at 48.4 suggests neutral positioning, neither overbought nor oversold. MACD at -1.77 shows mild bearish bias. Bollinger Bands indicate price is near the mid-to-lower range, with support around ₹240–245.
📈 Momentum Signals: Current volume (16.55 lakh) is lower than the 1-week average (21.84 lakh), showing reduced participation. Neutral RSI and weak MACD suggest consolidation with mild bearish undertone.
💡 Entry Zone: Optimal entry around ₹240–250 (near support).
🚪 Exit Zone: Resistance seen at ₹253 (50 DMA) and ₹285 (200 DMA). Profit booking advised near these levels.
🔎 Trend Status: The stock is currently consolidating with mild bearish bias. A breakout above ₹253 would indicate recovery momentum, while sustained trade above ₹285 would confirm trend reversal.
Positive
- Strong ROCE (20.1%) and ROE (16.5%) reflect efficient capital use.
- Low debt-to-equity ratio (0.05) ensures financial stability.
- Dividend yield of 1.20% adds investor appeal.
- Quarterly PAT growth (₹112 Cr vs ₹85.3 Cr) shows operational improvement.
Limitation
- Stock P/E (32.8) is higher than industry average (43.3), but valuations remain stretched relative to earnings growth.
- Trading below 200 DMA highlights weak technical strength.
- PEG ratio (-19.0) indicates poor growth-to-valuation alignment.
Company Negative News
- Decline in FII holding (-5.01%) shows reduced foreign investor confidence.
Company Positive News
- DII holding increased (+4.49%), showing strong domestic institutional support.
- Quarterly profit variation (+0.17%) indicates stabilization.
Industry
- Industry P/E at 43.3 is higher than CROMPTON’s P/E, suggesting the stock is relatively undervalued compared to peers.
- Consumer electricals sector remains resilient, supported by demand for appliances and home improvement products.
Conclusion
⚖️ CROMPTON shows strong fundamentals (low debt, healthy ROE/ROCE) but weak technical momentum. Short-term consolidation with mild bearish bias is evident. Entry near ₹240–250 offers margin of safety, while exits should be considered near ₹253–285. Long-term investors may hold for sector resilience and dividend yield, 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 CROMPTON with Havells, V-Guard, and Bajaj Electricals) to highlight relative strength and sector rotation opportunities?