ELGIEQUIP - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | ELGIEQUIP | Market Cap | 17,899 Cr. | Current Price | 565 ₹ | High / Low | 608 ₹ |
| Stock P/E | 48.3 | Book Value | 57.9 ₹ | Dividend Yield | 0.39 % | ROCE | 28.4 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 532 ₹ | DMA 200 | 510 ₹ |
| Chg in FII Hold | -0.91 % | Chg in DII Hold | 1.00 % | PAT Qtr | 99.1 Cr. | PAT Prev Qtr | 90.8 Cr. |
| RSI | 64.0 | MACD | 10.3 | Volume | 12,99,985 | Avg Vol 1Wk | 5,06,251 |
| Low price | 408 ₹ | High price | 608 ₹ | PEG Ratio | 2.07 | Debt to equity | 0.01 |
| 52w Index | 78.3 % | Qtr Profit Var | 23.7 % | EPS | 11.4 ₹ | Industry PE | 38.8 |
Chart & Trend Analysis:
ELGIEQUIP is trading at ₹565, above both its 50 DMA (₹532) and 200 DMA (₹510), confirming strong bullish momentum. RSI at 64.0 indicates healthy strength, close to overbought territory. MACD at 10.3 shows positive crossover, supporting upward momentum. Bollinger Bands are widening, reflecting volatility expansion. Current volume (12.99L) is significantly higher than the weekly average (5.06L), showing strong participation.
Momentum Signals:
- RSI near 65 signals bullish continuation but nearing overbought.
- MACD positive, confirming momentum strength.
- Resistance zones: ₹590–600 (short-term), ₹608 (52-week high).
- Support zones: ₹550–555 immediate, deeper support at ₹532 (50 DMA).
- Trend status: Strong uptrend with potential consolidation near resistance.
Entry Zone: ₹550–555 (ideal accumulation zone)
Exit Zone: ₹590–608 (profit booking zone)
Stop-Loss: Below ₹530
Positive
- Strong ROCE (28.4%) and ROE (21.9%) highlight excellent capital efficiency.
- Low debt-to-equity ratio (0.01) ensures robust financial health.
- Quarterly PAT improved to ₹99.1 Cr from ₹90.8 Cr, showing consistent earnings growth.
- Price strength supported by both 50 DMA and 200 DMA alignment.
Limitation
- High P/E (48.3) compared to industry average (38.8) reflects premium valuation.
- RSI at 64.0 indicates risk of short-term correction.
- PEG ratio of 2.07 suggests valuation concerns relative to growth.
Company Negative News
- Decline in FII holdings (-0.91%) shows reduced foreign investor confidence.
- Premium valuation may limit upside in near term.
Company Positive News
- DII holdings increased (+1.00%), showing domestic institutional support.
- Strong 52-week index performance (+78.3%) highlights sector leadership.
- EPS of ₹11.4 supports earnings visibility.
Industry
- Industry PE at 38.8 is slightly lower than ELGIEQUIP’s P/E, suggesting premium positioning.
- Capital goods sector supported by infrastructure demand and cyclical recovery.
Conclusion
ELGIEQUIP is trending upward with strong fundamentals and bullish technicals. Entry near ₹550–555 offers a favorable setup, with exits around ₹590–608. Stop-loss should be maintained below ₹530. While long-term investors can hold confidently given strong ROE, ROCE, and low debt, caution is warranted due to premium valuation and near-overbought RSI.
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