DALBHARAT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | DALBHARAT | Market Cap | 36,388 Cr. | Current Price | 1,940 ₹ | High / Low | 2,496 ₹ |
| Stock P/E | 249 | Book Value | 415 ₹ | Dividend Yield | 0.46 % | ROCE | 2.56 % |
| ROE | 2.36 % | Face Value | 2.00 ₹ | DMA 50 | 2,018 ₹ | DMA 200 | 2,073 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 1.18 % | PAT Qtr | 22.0 Cr. | PAT Prev Qtr | 14.0 Cr. |
| RSI | 43.3 | MACD | -62.4 | Volume | 1,68,445 | Avg Vol 1Wk | 2,07,594 |
| Low price | 1,680 ₹ | High price | 2,496 ₹ | PEG Ratio | -78.6 | Debt to equity | 0.00 |
| 52w Index | 31.8 % | Qtr Profit Var | 214 % | EPS | 7.68 ₹ | Industry PE | 28.2 |
📊 Chart & Trend Analysis: DALBHARAT is trading at ₹1,940, below both its 50 DMA (₹2,018) and 200 DMA (₹2,073), indicating bearish momentum. RSI at 43.3 suggests the stock is approaching oversold territory. MACD at -62.4 confirms strong negative momentum. Bollinger Bands show price leaning towards the lower band, with support near ₹1,680.
📈 Momentum Signals: Current volume (1.68 lakh) is lower than the 1-week average (2.07 lakh), showing reduced participation. Weak RSI and negative MACD reinforce bearish bias, suggesting selling pressure dominates.
💡 Entry Zone: Optimal entry around ₹1,850–1,900 (near support).
🚪 Exit Zone: Resistance seen at ₹2,018 (50 DMA) and ₹2,073 (200 DMA). Profit booking advised near these levels.
🔎 Trend Status: The stock is currently consolidating with bearish bias. A breakout above ₹2,018 would indicate recovery momentum.
Positive
- Debt-free balance sheet ensures financial stability.
- EPS of ₹7.68 provides earnings visibility.
- Quarterly PAT growth (₹22 Cr vs ₹14 Cr) shows operational improvement.
- DII holding increased (+1.18%), reflecting domestic institutional support.
Limitation
- Extremely high P/E (249) compared to industry average (28.2) suggests severe overvaluation.
- Weak ROCE (2.56%) and ROE (2.36%) indicate poor capital efficiency.
- Trading below both 50 DMA and 200 DMA highlights weak technical strength.
- PEG ratio (-78.6) reflects poor growth-to-valuation alignment.
Company Negative News
- Decline in FII holding (-0.83%) shows reduced foreign investor confidence.
- Low profitability metrics compared to peers.
Company Positive News
- DII holding increased (+1.18%), showing domestic institutional support.
- Quarterly profit growth (+214% YoY) highlights operational resilience despite weak margins.
Industry
- Industry P/E at 28.2 is far lower than DALBHARAT’s P/E, suggesting peers are more attractively valued.
- Cement sector remains vital, supported by infrastructure and housing demand, though margin pressures persist.
Conclusion
⚖️ DALBHARAT shows debt-free stability and recent profit growth but faces valuation concerns and weak efficiency metrics. Short-term consolidation with bearish bias is evident. Entry near ₹1,850–1,900 offers margin of safety, while exits should be considered near ₹2,018–2,073. Long-term investors should be cautious given high valuations, while traders may wait for confirmation above 50 DMA before aggressive buying.
Would you like me to extend this into a peer benchmarking overlay (e.g., comparing DALBHARAT with UltraTech Cement, Shree Cement, and ACC) to highlight relative strength and sector rotation opportunities?