EIDPARRY - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.6

📊 Technical Analysis

• Chart Patterns: Price (1,015 ₹) is below 50 DMA (1,040 ₹) but slightly above 200 DMA (1,000 ₹), showing consolidation with weak bias.
• Moving Averages: Neutral to bearish; price struggling to sustain above short-term averages.
• RSI: 48.4 → neutral zone, suggesting sideways momentum.
• MACD: -3.43 → bearish crossover, indicating short-term weakness.
• Bollinger Bands: Price near mid-band, showing consolidation with limited volatility.
• Volume Trends: Current volume (1.15 Lakh) is higher than 1-week average (79,499), showing increased activity but not strong buying interest.

📈 Momentum & Signals

• Short-term Momentum: Neutral to bearish due to weak MACD and price below 50 DMA.
• Support Zones: 1,000 ₹ (near-term), 950 ₹ (strong support), 639 ₹ (52-week low).
• Resistance Zones: 1,040 ₹ (50 DMA), 1,100 ₹ (psychological), 1,247 ₹ (recent high).
• Optimal Entry: 1,000–950 ₹ range if RSI dips closer to 45.
• Optimal Exit: 1,100–1,200 ₹ range unless breakout above 1,247 ₹.
• Trend Status: Stock is consolidating with bearish bias; reversal possible only if price sustains above 1,100 ₹.

✅ Positive

• DII holdings increased (+1.11%), showing domestic institutional confidence.
• Quarterly PAT improved to 40.7 Cr. from -27.9 Cr., showing recovery.
• Stock trading above 200 DMA, providing some long-term support.

⚠️ Limitation

• Extremely high P/E (901) compared to industry PE (23.8), indicating unsustainable valuation.
• Weak ROCE (1.66%) and negative ROE (-0.79%), showing poor efficiency.
• EPS (-38.9 ₹) is negative, reflecting losses.
• Dividend yield at 0.00% provides no shareholder returns.

📉 Company Negative News

• Past losses with negative EPS and weak profitability.
• FII holdings increased only marginally (+0.11%), showing limited foreign investor confidence.
• Stock trading well below 52-week high (1,247 ₹), reflecting weak momentum.

📈 Company Positive News

• Quarterly PAT recovery from losses indicates operational improvement.
• DII holdings increased significantly, balancing weak FII flows.
• Volume activity higher than average, showing investor interest.

🏭 Industry

• Industry PE at 23.8, much lower than company PE (901), suggesting EID Parry trades at an extreme premium.
• Sugar and agro sector remains cyclical, with demand linked to commodity prices and government policies.

🔎 Conclusion

• Stock is consolidating with bearish bias and weak fundamentals.
• Best entry near 1,000–950 ₹; exit near 1,100–1,200 ₹ unless breakout above 1,247 ₹.
• Long-term investors should be cautious due to stretched valuations, negative EPS, and weak efficiency despite short-term PAT recovery.