ELGIEQUIP - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.3
| Stock Code | ELGIEQUIP | Market Cap | 17,541 Cr. | Current Price | 554 ₹ | High / Low | 608 ₹ |
| Stock P/E | 47.3 | Book Value | 57.9 ₹ | Dividend Yield | 0.40 % | ROCE | 28.4 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 513 ₹ | DMA 200 | 502 ₹ |
| Chg in FII Hold | -0.91 % | Chg in DII Hold | 1.00 % | PAT Qtr | 99.1 Cr. | PAT Prev Qtr | 90.8 Cr. |
| RSI | 62.0 | MACD | 17.2 | Volume | 3,16,024 | Avg Vol 1Wk | 3,93,683 |
| Low price | 408 ₹ | High price | 608 ₹ | PEG Ratio | 2.03 | Debt to equity | 0.01 |
| 52w Index | 72.6 % | Qtr Profit Var | 23.7 % | EPS | 11.4 ₹ | Industry PE | 39.3 |
📈 Chart Patterns: Price is trading well above both 50 DMA (513 ₹) and 200 DMA (502 ₹), confirming strong bullish momentum. Trendlines show higher highs with resistance near 600–608 ₹.
📊 Moving Averages: Current price (554 ₹) comfortably above both 50 DMA and 200 DMA, reinforcing bullish strength.
📉 RSI: At 62.0, RSI is moderately high, indicating strong momentum but approaching overbought territory.
📊 MACD: Strongly positive at 17.2, confirming bullish crossover and momentum continuation.
📉 Bollinger Bands: Price near upper band, suggesting strong momentum but also risk of short-term pullback.
📊 Volume Trends: Current volume (3.16L) is below 1-week average (3.93L), showing reduced participation despite bullish price action.
🎯 Momentum Signals: Bullish. MACD and moving averages confirm strength, though RSI and volume warn of near-term caution.
💹 Entry Zone: 540–550 ₹ (support levels).
💹 Exit Zone: 590–605 ₹ (resistance levels).
📌 Trend Status: Trending upward with strong bullish bias.
Positive
- Strong ROCE (28.4%) and ROE (21.9%) highlight profitability.
- EPS of 11.4 ₹ supports earnings visibility.
- Debt-to-equity ratio at 0.01 shows near debt-free status.
- Price action above both 50 DMA and 200 DMA confirms bullish trend.
- Quarterly PAT growth (99.1 Cr. vs 90.8 Cr.) indicates earnings momentum.
Limitation
- High P/E (47.3) compared to industry PE (39.3), suggesting premium valuation.
- PEG ratio at 2.03 indicates stretched valuation relative to growth.
- Volume below average, limiting breakout confirmation.
- FII holdings reduced (-0.91%), showing foreign investor caution.
Company Negative News
- FII stake reduced, showing weaker foreign confidence.
- Premium valuation may limit upside potential.
Company Positive News
- DII holdings increased (+1.00%), showing strong domestic institutional support.
- Strong 52-week performance (+72.6%).
- Dividend yield at 0.40% provides shareholder returns.
Industry
- Capital goods sector remains strong with industry PE at 39.3, slightly below company PE (47.3), suggesting premium valuation for ELGIEQUIP.
- Infrastructure and industrial demand expected to support growth.
Conclusion
⚖️ ELGIEQUIP is in a strong uptrend, supported by bullish technicals (MACD, DMA crossover, RSI strength) and solid fundamentals (ROCE, ROE, low debt). RSI and volume trends suggest caution for fresh entries, but momentum remains intact. Best suited for swing trades within entry (540–550 ₹) and exit (590–605 ₹) zones, while long-term investors should monitor valuation risks before adding positions.