DALBHARAT - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 2.6

📊 Technical Analysis

• Chart Patterns: Price (2,013 ₹) is below both 50 DMA (2,078 ₹) and 200 DMA (2,089 ₹), indicating weakness.
• Moving Averages: Bearish bias as price trades under short-term and long-term averages.
• RSI: 47.6 → neutral zone, suggesting consolidation with limited momentum.
• MACD: -5.42 → bearish crossover, confirming downward pressure.
• Bollinger Bands: Price near mid-band, showing consolidation with risk of further decline.
• Volume Trends: Current volume (1.44 Lakh) is below 1-week average (1.92 Lakh), indicating weak participation.

📈 Momentum & Signals

• Short-term Momentum: Bearish bias due to MACD weakness and low volume.
• Support Zones: 2,000 ₹ (near-term), 1,900 ₹ (strong support), 1,601 ₹ (52-week low).
• Resistance Zones: 2,078 ₹ (50 DMA), 2,089 ₹ (200 DMA), 2,200 ₹ (psychological resistance).
• Optimal Entry: 1,950–2,000 ₹ range if RSI dips closer to 45.
• Optimal Exit: 2,078–2,200 ₹ range unless breakout above 2,200 ₹.
• Trend Status: Stock is consolidating with bearish bias; reversal only if price sustains above 2,089 ₹.

✅ Positive

• Debt-free balance sheet (Debt-to-equity 0.00).
• DII (+0.44%) and FII (+0.52%) holdings increased, showing institutional confidence.
• Book value of 415 ₹ provides strong asset backing.

⚠️ Limitation

• Extremely high P/E (288) compared to industry PE (33.2), indicating stretched valuation.
• Weak ROCE (2.56%) and ROE (2.36%), showing poor capital efficiency.
• EPS (6.98 ₹) is modest relative to valuation.

📉 Company Negative News

• Quarterly PAT dropped from 33 Cr. to 14 Cr.
• Stock trading well below 52-week high (2,496 ₹), reflecting weak momentum.

📈 Company Positive News

• Institutional investors increased holdings (FII +0.52%, DII +0.44%).
• Dividend yield at 0.44% provides shareholder returns.

🏭 Industry

• Industry PE at 33.2, much lower than company PE (288), suggesting Dalbharat trades at a steep premium.
• Cement sector remains cyclical, with demand linked to infrastructure and real estate growth.

🔎 Conclusion

• Stock is consolidating with bearish bias and weak fundamentals.
• Best entry near 1,950–2,000 ₹; exit near 2,078–2,200 ₹ unless breakout above 2,200 ₹.
• Long-term investors should be cautious due to stretched valuations and declining profitability.