DMART - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | DMART | Market Cap | 2,99,057 Cr. | Current Price | 4,586 ₹ | High / Low | 4,950 ₹ |
| Stock P/E | 95.9 | Book Value | 366 ₹ | Dividend Yield | 0.00 % | ROCE | 18.4 % |
| ROE | 14.0 % | Face Value | 10.0 ₹ | DMA 50 | 4,212 ₹ | DMA 200 | 4,090 ₹ |
| Chg in FII Hold | 0.29 % | Chg in DII Hold | -0.06 % | PAT Qtr | 923 Cr. | PAT Prev Qtr | 747 Cr. |
| RSI | 64.4 | MACD | 140 | Volume | 5,43,787 | Avg Vol 1Wk | 4,55,910 |
| Low price | 3,529 ₹ | High price | 4,950 ₹ | PEG Ratio | 4.41 | Debt to equity | 0.06 |
| 52w Index | 74.4 % | Qtr Profit Var | 17.6 % | EPS | 47.9 ₹ | Industry PE | 46.6 |
📈 DMART is trading at ₹4,586, above both its 50 DMA (₹4,212) and 200 DMA (₹4,090), confirming bullish alignment. RSI at 64.4 indicates strong momentum but approaching overbought territory. MACD at 140 supports bullish bias. Bollinger Bands show price moving toward the upper band, suggesting breakout potential. Current volume (5,43,787) is above the 1-week average (4,55,910), confirming strong participation.
🔑 Short-term momentum signals: Support lies near ₹4,400–₹4,450 (DMA cluster), resistance around ₹4,900–₹4,950 (recent high). Entry zone is closer to ₹4,400–₹4,450 on pullbacks. Exit zone should be considered near ₹4,900–₹4,950. The stock is in a trending phase with bullish bias.
✅ Positive
- Strong quarterly PAT growth (+17.6%, ₹923 Cr vs ₹747 Cr).
- EPS of ₹47.9 supports earnings base.
- ROCE (18.4%) and ROE (14.0%) show solid profitability.
- FII holdings increased (+0.29%), showing foreign investor confidence.
- Stock trading well above long-term averages with strong momentum.
⚠️ Limitation
- Very high P/E (95.9) vs industry average (46.6), indicating steep valuation.
- PEG ratio of 4.41 suggests overvaluation relative to growth.
- Dividend yield at 0.00% offers no shareholder return.
- DII holdings decreased (-0.06%), showing domestic investor caution.
📉 Company Negative News
- Valuation stretched compared to peers.
- Domestic institutional selling pressure.
📊 Company Positive News
- Strong quarterly profit growth.
- Foreign institutional inflows support momentum.
- Technical strength above DMA levels with volume confirmation.
🏭 Industry
- Industry P/E at 46.6 highlights sector trading at lower multiples.
- Retail sector remains resilient with steady demand outlook.
📝 Conclusion
DMART is trending upward with strong bullish technical signals supported by earnings growth and foreign inflows. Entry near ₹4,400–₹4,450 offers favorable risk-reward, with exit around ₹4,900–₹4,950. Valuation remains stretched, so momentum trades should be managed with strict stop-loss discipline.
Would you like me to extend this into a sector overlay benchmarking module comparing DMART against other retail peers for relative strength and valuation?