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EMAMILTD - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.9

Last Updated Time : 04 May 26, 11:56 am

Technical Rating: 3.9

Stock Code EMAMILTD Market Cap 19,402 Cr. Current Price 444 ₹ High / Low 655 ₹
Stock P/E 22.2 Book Value 71.8 ₹ Dividend Yield 2.25 % ROCE 34.0 %
ROE 31.5 % Face Value 1.00 ₹ DMA 50 448 ₹ DMA 200 506 ₹
Chg in FII Hold -0.46 % Chg in DII Hold 0.19 % PAT Qtr 339 Cr. PAT Prev Qtr 182 Cr.
RSI 51.6 MACD 7.32 Volume 3,90,059 Avg Vol 1Wk 3,71,346
Low price 385 ₹ High price 655 ₹ PEG Ratio 28.1 Debt to equity 0.01
52w Index 21.9 % Qtr Profit Var 21.3 % EPS 19.8 ₹ Industry PE 42.5

📈 Chart Patterns: Price is consolidating near the 50 DMA (448 ₹) and below the 200 DMA (506 ₹). Trendlines show sideways movement with support near 440 ₹ and resistance around 470–480 ₹.

📊 Moving Averages: Current price (444 ₹) is slightly below the 50 DMA and well below the 200 DMA, indicating short-term weakness but long-term caution.

📉 RSI: Neutral at 51.6, suggesting balanced momentum without strong buying or selling pressure.

📊 MACD: Positive at 7.32, showing mild bullish crossover and potential short-term upside.

📉 Bollinger Bands: Price near mid-band, reflecting consolidation with limited volatility expansion.

📊 Volume Trends: Current volume (3.90L) is slightly above 1-week average (3.71L), indicating steady participation and mild accumulation.

🎯 Momentum Signals: Neutral to mildly bullish. MACD supports short-term upside, but price below 200 DMA limits strength.

💹 Entry Zone: 435–445 ₹ (support levels).

💹 Exit Zone: 470–480 ₹ (resistance levels).

📌 Trend Status: Consolidating with mild bullish bias.


Positive

  • Strong ROCE (34.0%) and ROE (31.5%) highlight excellent capital efficiency.
  • Dividend yield of 2.25% adds shareholder value.
  • Debt-to-equity ratio at 0.01 shows near debt-free status.
  • Quarterly PAT surged to 339 Cr. from 182 Cr., showing strong operational growth.

Limitation

  • Price below 200 DMA (506 ₹) reflects medium-term weakness.
  • PEG ratio of 28.1 suggests stretched valuations relative to growth.
  • FII holdings reduced (-0.46%), showing weaker foreign confidence.

Company Negative News

  • Decline in FII holdings (-0.46%).
  • High PEG ratio raises valuation concerns.

Company Positive News

  • DII holdings increased (+0.19%), showing domestic institutional support.
  • Quarterly PAT growth highlights operational efficiency and profitability.

Industry

  • Industry PE at 42.5 is significantly higher than EMAMILTD’s P/E (22.2), suggesting undervaluation relative to peers.
  • Consumer goods sector remains resilient with steady demand trends.

Conclusion

⚖️ EMAMILTD is consolidating with strong fundamentals but mixed technical signals. Entry near 435–445 ₹ offers a favorable setup, with exits around 470–480 ₹. Long-term investors may hold confidently given strong ROE, ROCE, and dividend yield, but short-term traders should exercise caution due to price below 200 DMA and stretched PEG ratio.

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