⚠ 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.
DCMSHRIRAM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | DCMSHRIRAM | Market Cap | 18,261 Cr. | Current Price | 1,171 ₹ | High / Low | 1,502 ₹ |
| Stock P/E | 27.0 | Book Value | 464 ₹ | Dividend Yield | 0.78 % | ROCE | 10.8 % |
| ROE | 8.07 % | Face Value | 2.00 ₹ | DMA 50 | 1,195 ₹ | DMA 200 | 1,196 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.07 % | PAT Qtr | 237 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 44.5 | MACD | -19.1 | Volume | 15,566 | Avg Vol 1Wk | 42,484 |
| Low price | 903 ₹ | High price | 1,502 ₹ | PEG Ratio | -1.43 | Debt to equity | 0.30 |
| 52w Index | 44.8 % | Qtr Profit Var | -4.77 % | EPS | 41.1 ₹ | Industry PE | 22.7 |
📊 Technical Analysis
- Chart Patterns: DCMSHRIRAM is trading at 1,171 ₹, well below its high of 1,502 ₹, showing weakness and sideways consolidation after a decline.
- Moving Averages: Current price is below both 50 DMA (1,195 ₹) and 200 DMA (1,196 ₹), confirming bearish momentum.
- RSI: At 44.5, the stock is neutral, leaning toward oversold territory.
- MACD: Negative (-19.1), reinforcing bearish crossover and weak momentum.
- Bollinger Bands: Price is near the lower band, suggesting oversold conditions and potential mean reversion.
- Volume Trends: Current volume (15,566) is much lower than 1-week average (42,484), showing weak participation and lack of strong buying interest.
📈 Momentum & Signals
- Short-Term Momentum: Weak, with potential for relief rally if RSI-driven bounce occurs.
- Support Zones: 1,150 ₹ (near-term support), 1,100 ₹ (strong support), 903 ₹ (long-term support).
- Resistance Zones: 1,195–1,200 ₹ (DMA resistance), 1,250 ₹ (intermediate resistance), 1,300 ₹ (major resistance).
- Optimal Entry: Around 1,150–1,170 ₹ if support holds.
- Optimal Exit: 1,200–1,250 ₹ range, unless breakout above 1,300 ₹ confirms reversal.
- Trend Status: Currently consolidating with bearish bias; reversal possible only if price sustains above 1,200–1,250 ₹.
✅ Positive
- EPS of 41.1 ₹ reflects decent earnings power.
- Dividend yield of 0.78% provides some income support.
- Low debt-to-equity (0.30) ensures manageable leverage.
- FII (+0.01%) and DII (+0.07%) holdings increased slightly, showing cautious institutional support.
⚠️ Limitation
- Stock P/E (27.0) is higher than industry PE (22.7), suggesting mild overvaluation.
- PEG ratio (-1.43) indicates poor valuation relative to growth.
- ROCE (10.8%) and ROE (8.07%) are modest, showing weak capital efficiency.
- Trading below both 50 DMA and 200 DMA confirms weak technical structure.
📉 Company Negative News
- Quarterly profit variation (-4.77%) highlights earnings pressure.
- PAT dropped from 168 Cr. to 237 Cr. but growth remains inconsistent.
📈 Company Positive News
- PAT improved sequentially from 168 Cr. to 237 Cr.
- Institutional holdings (FII & DII) showed slight positive change.
- Dividend yield adds investor appeal despite modest returns.
🏭 Industry
- Industry P/E is 22.7, lower than DCMSHRIRAM’s 27.0, suggesting relative overvaluation.
- Chemicals and agri-business sector remains cyclical, influenced by commodity prices and demand trends.
📝 Conclusion
- DCMSHRIRAM is fundamentally stable but technically consolidating with bearish bias.
- Stock may see a relief rally if support near 1,150 ₹ holds and price sustains above 1,200–1,250 ₹.
- Best strategy: Accumulate cautiously near 1,150–1,170 ₹ with exit around 1,200–1,250 ₹ unless breakout above 1,300 ₹ confirms reversal.