EMAMILTD - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.4

📊 Technical Analysis

• Chart Patterns: Price (520 ₹) is below both 50 DMA (536 ₹) and 200 DMA (569 ₹), indicating weakness.
• Moving Averages: Bearish bias as price trades under short-term and long-term averages.
• RSI: 48.6 → neutral zone, suggesting consolidation with limited momentum.
• MACD: 1.82 → slight bullish crossover, showing potential for short-term recovery.
• Bollinger Bands: Price near mid-band, indicating consolidation with potential breakout if volume rises.
• Volume Trends: Current volume (4.91 Lakh) is slightly higher than 1-week average (4.51 Lakh), showing active participation.

📈 Momentum & Signals

• Short-term Momentum: Neutral to mildly bullish due to positive MACD and stable RSI.
• Support Zones: 510 ₹ (near-term), 498 ₹ (strong support), 480 ₹ (major support).
• Resistance Zones: 536 ₹ (50 DMA), 569 ₹ (200 DMA), 600 ₹ (psychological resistance).
• Optimal Entry: 510–498 ₹ range on dips.
• Optimal Exit: 536–569 ₹ range unless breakout above 600 ₹.
• Trend Status: Stock is consolidating with mild bullish bias; reversal possible if price sustains above 536–569 ₹.

✅ Positive

• Strong ROCE (34.0%) and ROE (31.5%) indicate excellent capital efficiency.
• Dividend yield at 1.53% provides shareholder returns.
• DII holdings increased (+0.94%), showing domestic institutional confidence.
• Debt-to-equity ratio of 0.01 indicates virtually debt-free balance sheet.

⚠️ Limitation

• Price trading below both 50 DMA and 200 DMA, showing weakness.
• Quarterly profit variation down by -14.8%, showing earnings pressure.
• PEG ratio (35.3) suggests poor growth prospects relative to valuation.

📉 Company Negative News

• FII holdings decreased (-0.96%), showing reduced foreign investor confidence.
• Stock trading well below 52-week high (655 ₹), reflecting weak momentum.

📈 Company Positive News

• Quarterly PAT improved to 182 Cr. from 163 Cr., showing sequential growth.
• DII holdings increased, balancing FII outflows.
• Dividend yield supports investor sentiment.

🏭 Industry

• Industry PE at 49.7, higher than company PE (27.9), suggesting Emami trades at a discount.
• FMCG sector remains resilient with steady demand outlook despite margin pressures.

🔎 Conclusion

• Stock is consolidating with mild bullish bias supported by MACD and stable RSI.
• Best entry near 510–498 ₹; exit near 536–569 ₹ unless breakout above 600 ₹.
• Long-term investors benefit from strong fundamentals and discount valuation, but should monitor earnings pressure and high PEG ratio.