ELECON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | ELECON | Market Cap | 8,933 Cr. | Current Price | 398 ₹ | High / Low | 717 ₹ |
| Stock P/E | 24.0 | Book Value | 85.8 ₹ | Dividend Yield | 0.50 % | ROCE | 29.1 % |
| ROE | 22.6 % | Face Value | 1.00 ₹ | DMA 50 | 425 ₹ | DMA 200 | 497 ₹ |
| Chg in FII Hold | -0.22 % | Chg in DII Hold | 0.35 % | PAT Qtr | 61.9 Cr. | PAT Prev Qtr | 78.9 Cr. |
| RSI | 45.0 | MACD | -11.7 | Volume | 6,49,296 | Avg Vol 1Wk | 6,29,210 |
| Low price | 348 ₹ | High price | 717 ₹ | PEG Ratio | 0.47 | Debt to equity | 0.12 |
| 52w Index | 13.6 % | Qtr Profit Var | -32.7 % | EPS | 22.5 ₹ | Industry PE | 33.0 |
📉 Chart & Trend: ELECON is trading at ₹398, below both its 50 DMA (₹425) and 200 DMA (₹497). This indicates short-term and medium-term weakness. The stock is in a consolidation-to-downtrend
📊 Momentum Indicators:
- RSI at 45.0 shows weak momentum, leaning towards oversold but not yet reversal strength.
- MACD at -11.7 confirms bearish crossover.
- Bollinger Bands: Price is near the lower band, suggesting limited downside but no strong reversal yet.
- Volume is slightly above average, showing mild activity but not strong accumulation.
📈 Support & Resistance:
- Immediate support: ₹348 (recent low).
- Resistance zones: ₹425 (50 DMA) and ₹497 (200 DMA).
- Optimal entry: ₹360–380 near support.
- Exit zone: ₹440–460 if rebound occurs.
🔎 Trend Status: The stock is consolidating with bearish bias, awaiting breakout above 50 DMA for reversal confirmation.
Positive
- Strong ROCE (29.1%) and ROE (22.6%) highlight efficient capital use.
- Low debt-to-equity ratio (0.12) indicates financial stability.
- PEG ratio of 0.47 suggests attractive valuation relative to growth.
- EPS of ₹22.5 shows consistent earnings power.
Limitation
- Price below both 50 DMA and 200 DMA signals technical weakness.
- Quarterly PAT declined to ₹61.9 Cr from ₹78.9 Cr, showing earnings pressure.
- Quarter profit variation (-32.7%) indicates volatility in performance.
Company Negative News
- FII holding decreased by -0.22%, showing reduced foreign investor confidence.
- Recent earnings decline adds pressure on valuations.
Company Positive News
- DII holding increased by +0.35%, reflecting domestic institutional support.
- Strong historical profitability metrics (ROCE, ROE) remain intact despite short-term weakness.
Industry
- Capital goods sector is cyclical, influenced by infrastructure spending and industrial demand.
- Industry PE at 33.0 is higher than ELECON’s PE (24.0), suggesting relative undervaluation compared to peers.
Conclusion
📌 ELECON is technically weak, consolidating below key moving averages with bearish momentum. Entry is favorable around ₹360–380 with stop-loss below ₹340. Short-term rebound may target ₹440–460, but sustained breakout requires volume confirmation. Fundamentally strong with efficient capital use, making it attractive for long-term investors despite near-term earnings pressure.
Would you like me to also prepare a peer benchmarking overlay against other capital goods players like Thermax, ABB India, and Siemens to highlight relative strength and sector rotation opportunities?