DCMSHRIRAM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | DCMSHRIRAM | Market Cap | 17,060 Cr. | Current Price | 1,093 ₹ | High / Low | 1,502 ₹ |
| Stock P/E | 25.2 | Book Value | 464 ₹ | Dividend Yield | 0.82 % | ROCE | 10.8 % |
| ROE | 8.07 % | Face Value | 2.00 ₹ | DMA 50 | 1,099 ₹ | DMA 200 | 1,163 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.07 % | PAT Qtr | 237 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 57.3 | MACD | -20.6 | Volume | 49,905 | Avg Vol 1Wk | 81,757 |
| Low price | 945 ₹ | High price | 1,502 ₹ | PEG Ratio | -1.34 | Debt to equity | 0.30 |
| 52w Index | 26.6 % | Qtr Profit Var | -4.77 % | EPS | 41.1 ₹ | Industry PE | 24.4 |
📊 Chart & Trend Analysis: DCMSHRIRAM is trading at ₹1,093, close to its 50 DMA (₹1,099) but below the 200 DMA (₹1,163), showing mixed signals with mild weakness. RSI at 57.3 suggests neutral-to-positive momentum, not overbought. MACD at -20.6 indicates bearish undertone. Bollinger Bands show price near the mid-range, with support around ₹945 and resistance near ₹1,163.
📈 Momentum Signals: Current volume (49,905) is lower than the 1-week average (81,757), showing reduced participation. RSI above 50 suggests some strength, but negative MACD and weak volume reinforce consolidation.
💡 Entry Zone: Optimal entry around ₹1,050–1,080 (near support).
🚪 Exit Zone: Resistance seen at ₹1,099 (50 DMA) and ₹1,163 (200 DMA). Profit booking advised near these levels.
🔎 Trend Status: The stock is currently consolidating with mild bearish bias. A breakout above ₹1,163 would confirm recovery momentum.
Positive
- EPS of ₹41.1 supports earnings visibility.
- Dividend yield of 0.82% adds investor appeal.
- Low debt-to-equity ratio (0.30) ensures manageable leverage.
- Stable fundamentals with large market cap (₹17,060 Cr).
Limitation
- ROCE (10.8%) and ROE (8.07%) are relatively weak compared to peers.
- Trading below 200 DMA highlights weak technical strength.
- PEG ratio (-1.34) indicates poor growth-to-valuation alignment.
Company Negative News
- Quarterly profit decline (₹237 Cr vs ₹168 Cr) indicates margin pressure.
- Volume participation remains weak compared to averages.
Company Positive News
- FII holding increased slightly (+0.01%), showing marginal foreign support.
- DII holding increased (+0.07%), reflecting domestic institutional confidence.
Industry
- Industry P/E at 24.4 is slightly lower than DCMSHRIRAM’s P/E (25.2), suggesting valuations are in line with peers.
- Chemicals and agro-based sector remains vital, supported by demand in fertilizers, sugar, and industrial chemicals.
Conclusion
⚖️ DCMSHRIRAM shows stable fundamentals but weak technical momentum. Short-term consolidation with mild bearish bias is evident. Entry near ₹1,050–1,080 offers margin of safety, while exits should be considered near ₹1,099–1,163. Long-term investors may hold for sector relevance, but traders should wait for confirmation above 200 DMA before aggressive buying.
Would you like me to extend this into a peer benchmarking overlay (e.g., comparing DCMSHRIRAM with Chambal Fertilizers, GNFC, and RCF) to highlight relative strength and sector rotation opportunities?