ELGIEQUIP - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | ELGIEQUIP | Market Cap | 15,307 Cr. | Current Price | 483 ₹ | High / Low | 608 ₹ |
| Stock P/E | 41.3 | Book Value | 57.9 ₹ | Dividend Yield | 0.46 % | ROCE | 28.4 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 492 ₹ | DMA 200 | 498 ₹ |
| Chg in FII Hold | -3.01 % | Chg in DII Hold | 1.84 % | PAT Qtr | 99.1 Cr. | PAT Prev Qtr | 90.8 Cr. |
| RSI | 44.5 | MACD | -4.50 | Volume | 5,05,280 | Avg Vol 1Wk | 4,23,800 |
| Low price | 390 ₹ | High price | 608 ₹ | PEG Ratio | 1.77 | Debt to equity | 0.01 |
| 52w Index | 42.5 % | Qtr Profit Var | 23.7 % | EPS | 11.4 ₹ | Industry PE | 35.8 |
📉 Chart & Trend: ELGIEQUIP is trading at ₹483, slightly below both its 50 DMA (₹492) and 200 DMA (₹498). This indicates short-term weakness but not a breakdown. The stock is in a consolidation phase with bearish bias.
📊 Momentum Indicators:
- RSI at 44.5 shows weak momentum, leaning towards oversold but not yet reversal strength.
- MACD at -4.50 confirms mild bearish crossover.
- Bollinger Bands: Price is near the lower band, suggesting limited downside but no strong reversal yet.
- Volume is above average (5,05,280 vs 4,23,800), showing active participation despite weakness.
📈 Support & Resistance:
- Immediate support: ₹460–470 zone.
- Strong support: ₹390 (recent low).
- Resistance zones: ₹492 (50 DMA) and ₹498 (200 DMA).
- Optimal entry: ₹460–470 near support.
- Exit zone: ₹500–520 if rebound occurs.
🔎 Trend Status: The stock is consolidating with bearish bias, awaiting breakout above 200 DMA for reversal confirmation.
Positive
- Strong ROCE (28.4%) and ROE (21.9%) highlight efficient capital use.
- Low debt-to-equity ratio (0.01) indicates robust financial health.
- EPS of ₹11.4 shows consistent earnings power.
- PAT improved to ₹99.1 Cr from ₹90.8 Cr, reflecting growth momentum.
Limitation
- Price below both 50 DMA and 200 DMA signals technical weakness.
- RSI and MACD both show bearish signals, limiting immediate upside.
- High P/E of 41.3 compared to industry PE of 35.8 suggests premium valuation.
Company Negative News
- FII holding decreased by -3.01%, showing reduced foreign investor confidence.
Company Positive News
- DII holding increased by +1.84%, reflecting strong domestic institutional support.
- Quarterly profit growth of 23.7% indicates strong operational performance.
Industry
- Capital goods sector is cyclical, influenced by infrastructure spending and industrial demand.
- Industry PE at 35.8 is lower than ELGIEQUIP’s PE, suggesting premium valuation for brand strength and market leadership.
Conclusion
📌 ELGIEQUIP is consolidating with bearish bias, trading below its 50 and 200 DMA but supported by strong fundamentals. Entry is favorable around ₹460–470 with stop-loss below ₹450. Short-term rebound may target ₹500–520, but sustained breakout requires volume confirmation. Fundamentally strong, making it attractive for long-term investors despite short-term technical weakness.
Would you like me to extend this into a peer benchmarking overlay against other capital goods players like Elecon, Thermax, ABB India, and Siemens to highlight relative strength and sector rotation opportunities?