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ELGIEQUIP - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | ELGIEQUIP | Market Cap | 13,760 Cr. | Current Price | 434 ₹ | High / Low | 608 ₹ |
| Stock P/E | 39.1 | Book Value | 57.9 ₹ | Dividend Yield | 0.51 % | ROCE | 28.4 % |
| ROE | 21.9 % | Face Value | 1.00 ₹ | DMA 50 | 459 ₹ | DMA 200 | 495 ₹ |
| Chg in FII Hold | -3.01 % | Chg in DII Hold | 1.84 % | PAT Qtr | 90.8 Cr. | PAT Prev Qtr | 81.5 Cr. |
| RSI | 46.5 | MACD | -11.4 | Volume | 2,63,725 | Avg Vol 1Wk | 3,78,176 |
| Low price | 390 ₹ | High price | 608 ₹ | PEG Ratio | 1.68 | Debt to equity | 0.01 |
| 52w Index | 20.2 % | Qtr Profit Var | -7.24 % | EPS | 11.1 ₹ | Industry PE | 36.0 |
📈 Technical Analysis
- Chart Patterns: Stock corrected from 608 ₹ highs and is consolidating near 434 ₹, showing weakness but holding above 390 ₹ support.
- Moving Averages: Current price (434 ₹) is below 50 DMA (459 ₹) and 200 DMA (495 ₹), confirming short-term bearishness.
- RSI: At 46.5, the stock is neutral, neither oversold nor overbought.
- MACD: Negative (-11.4), indicating bearish momentum persists.
- Bollinger Bands: Price is near the lower band, suggesting oversold conditions but not yet a reversal signal.
- Volume Trends: Current volume (2,63,725) is lower than 1-week average (3,78,176), showing reduced participation.
📊 Momentum & Signals
- Short-Term Momentum: Weak, with potential for sideways consolidation.
- Support Zones: 420 ₹ (near-term), 390 ₹ (major support).
- Resistance Zones: 459 ₹ (50 DMA), 495 ₹ (200 DMA), 520 ₹ (trendline resistance).
- Entry Zone: 420–430 ₹ if RSI stabilizes.
- Exit Zone: 459–495 ₹ on rebound; strict stop-loss below 420 ₹.
- Trend Status: Stock is consolidating after correction, awaiting breakout direction.
✅ Positive
- Strong fundamentals with ROCE (28.4 %) and ROE (21.9 %) indicating efficient capital use.
- Low debt-to-equity ratio (0.01) shows excellent financial stability.
- EPS at 11.1 ₹ supports earnings strength.
- Dividend yield at 0.51 % provides modest income support.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA indicates weak technical strength.
- Quarterly PAT declined (90.8 Cr. vs 81.5 Cr. previously), showing earnings pressure.
- PEG ratio at 1.68 suggests valuation is stretched relative to growth.
📉 Company Negative News
- Quarterly profit variance (-7.24 %) highlights declining earnings momentum.
- FII holdings decreased (-3.01 %), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased (+1.84 %), showing strong domestic institutional support.
- Consistent profitability with strong ROCE and ROE metrics.
🏭 Industry
- Industry PE at 36.0 is slightly lower than company PE (39.1), suggesting ELGIEQUIP trades at a premium.
- Sector outlook remains stable, with demand recovery potential in industrial equipment.
🔎 Conclusion
- ELGIEQUIP is in a consolidation phase after correction, with neutral RSI and bearish MACD.
- Short-term traders may consider entry near 420–430 ₹ with exit around 459–495 ₹.
- Long-term investors may hold due to strong fundamentals, but should be cautious of premium valuations and declining FII interest.