ELECON - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.3

📉 ELECON is currently in a consolidating phase, with price hovering near key moving averages and mixed momentum indicators.

📊 Technical Overview

• Trend Status: Consolidating — price has pulled back from its high of ₹717 to ₹558, stabilizing near the 50 DMA (₹574) and 200 DMA (₹577).
• Moving Averages: Price is slightly below both 50 and 200 DMA, indicating short-term weakness but medium-term support.
• RSI (47.5): Neutral zone, suggesting indecision and lack of strong momentum.
• MACD (-5.57): Negative crossover indicates bearish short-term sentiment.
• Bollinger Bands: Price near mid-band, consistent with consolidation and low volatility.
• Volume: Below average (1.77L vs 2.67L), showing reduced participation and cautious sentiment.

📌 Entry & Exit Zones

• Support Zone: ₹540–₹555 — favorable for entry on confirmation of support.
• Resistance Zone: ₹575–₹590 — potential exit or partial profit booking zone.
• Breakout Level: ₹600+ — crossing this could signal trend recovery.

✅ Positive

• Strong ROCE (29.1%) and ROE (22.6%) reflect efficient capital utilization.
• Low debt-to-equity ratio (0.12) supports financial stability.
• PEG ratio of 0.61 indicates reasonable valuation relative to growth.
• EPS of ₹23.8 and consistent dividend payout (0.36%).

⚠️ Limitation

• MACD negative and RSI below 50 suggest weak short-term momentum.
• Price trading below key moving averages and volume below average.
• Stock P/E (31.1) is lower than industry average (51.6), but may reflect growth concerns.

📰 Company Negative News

• FII holding declined by 1.30%, indicating reduced foreign investor confidence.
• Quarterly PAT dropped from ₹107 Cr to ₹78.9 Cr, showing earnings moderation.

🌟 Company Positive News

• Quarterly profit variation of +17.6% suggests signs of operational recovery.
• DII holding increased by 0.33%, showing domestic institutional support.

🏭 Industry

• Operates in industrial gear and transmission systems, a sector tied to infrastructure and manufacturing growth.
• Industry P/E (51.6) is significantly higher than the stock’s, indicating potential undervaluation or conservative expectations.

🧾 Conclusion

• ELECON is technically consolidating with mixed indicators and strong long-term fundamentals.
• Entry near ₹540–₹555 is attractive if support holds; watch for breakout above ₹600.
• Investors should monitor volume and MACD trends; long-term outlook remains stable with valuation support.