EMAMILTD - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.6
| Stock Code | EMAMILTD | Market Cap | 18,209 Cr. | Current Price | 417 ₹ | High / Low | 655 ₹ |
| Stock P/E | 20.8 | Book Value | 71.8 ₹ | Dividend Yield | 2.40 % | ROCE | 34.0 % |
| ROE | 31.5 % | Face Value | 1.00 ₹ | DMA 50 | 475 ₹ | DMA 200 | 530 ₹ |
| Chg in FII Hold | -1.90 % | Chg in DII Hold | 1.72 % | PAT Qtr | 339 Cr. | PAT Prev Qtr | 182 Cr. |
| RSI | 26.1 | MACD | -19.2 | Volume | 17,55,037 | Avg Vol 1Wk | 7,91,333 |
| Low price | 405 ₹ | High price | 655 ₹ | PEG Ratio | 26.4 | Debt to equity | 0.01 |
| 52w Index | 4.79 % | Qtr Profit Var | 21.3 % | EPS | 19.8 ₹ | Industry PE | 43.1 |
📉 Chart & Trend: EMAMILTD is trading at ₹417, well below its 50 DMA (₹475) and 200 DMA (₹530). This indicates clear short-term and medium-term weakness. The stock is in a downtrend with oversold bias.
📊 Momentum Indicators:
- RSI at 26.1 shows strong oversold conditions, suggesting potential for a technical rebound.
- MACD at -19.2 confirms bearish crossover and selling pressure.
- Bollinger Bands: Price is hugging the lower band, indicating oversold territory.
- Volume is significantly above average (17,55,037 vs 7,91,333), showing heavy selling activity but also potential accumulation at lower levels.
📈 Support & Resistance:
- Immediate support: ₹405 (recent low).
- Strong support: ₹390 (52-week low zone).
- Resistance zones: ₹475 (50 DMA) and ₹530 (200 DMA).
- Optimal entry: ₹405–420 near support with strict stop-loss.
- Exit zone: ₹470–490 if rebound occurs.
🔎 Trend Status: The stock is reversing from oversold levels, but confirmation requires sustained move above 50 DMA.
Positive
- Strong ROCE (34.0%) and ROE (31.5%) highlight excellent capital efficiency.
- Low debt-to-equity ratio (0.01) indicates robust financial health.
- Dividend yield of 2.40% provides income support for investors.
- PAT improved to ₹339 Cr from ₹182 Cr, showing strong earnings growth.
Limitation
- Price trading well below both 50 DMA and 200 DMA signals technical weakness.
- PEG ratio of 26.4 suggests expensive valuation relative to growth.
- Heavy selling pressure reflected in high volume and FII outflows.
Company Negative News
- FII holding decreased by -1.90%, showing reduced foreign investor confidence.
- Stock has lost significant value from its 52-week high of ₹655.
Company Positive News
- DII holding increased by +1.72%, reflecting strong domestic institutional support.
- Quarterly profit growth of 21.3% indicates improving operational performance.
Industry
- FMCG sector is defensive, benefiting from steady demand despite market volatility.
- Industry PE at 43.1 is higher than EMAMILTD’s PE (20.8), suggesting relative undervaluation compared to peers.
Conclusion
📌 EMAMILTD is technically weak, trading deep below moving averages with oversold momentum. Entry is favorable around ₹405–420 with stop-loss below ₹390. Short-term rebound may target ₹470–490, but sustained recovery requires volume confirmation and move above 50 DMA. Fundamentally strong with high ROCE/ROE and dividend yield, 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 FMCG leaders like Dabur, Marico, and HUL to highlight relative strength and sector rotation opportunities?