EMAMILTD - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.6
| Stock Code | EMAMILTD | Market Cap | 17,488 Cr. | Current Price | 401 ₹ | High / Low | 635 ₹ |
| Stock P/E | 20.6 | Book Value | 72.3 ₹ | Dividend Yield | 2.50 % | ROCE | 29.8 % |
| ROE | 28.3 % | Face Value | 1.00 ₹ | DMA 50 | 437 ₹ | DMA 200 | 493 ₹ |
| Chg in FII Hold | -0.46 % | Chg in DII Hold | 0.19 % | PAT Qtr | 166 Cr. | PAT Prev Qtr | 339 Cr. |
| RSI | 33.2 | MACD | -9.84 | Volume | 2,32,247 | Avg Vol 1Wk | 9,70,058 |
| Low price | 385 ₹ | High price | 635 ₹ | PEG Ratio | 1.41 | Debt to equity | 0.03 |
| 52w Index | 6.10 % | Qtr Profit Var | -12.3 % | EPS | 19.3 ₹ | Industry PE | 43.0 |
Chart & Trend Analysis:
EMAMILTD is trading at ₹401, below both its 50 DMA (₹437) and 200 DMA (₹493), reflecting medium-term weakness. RSI at 33.2 indicates oversold conditions, while MACD at -9.84 confirms bearish momentum. Bollinger Bands are widening, suggesting volatility expansion. Current volume (2.32L) is significantly lower than the weekly average (9.70L), showing weak participation.
Momentum Signals:
- RSI near 30 signals oversold territory with potential rebound.
- MACD negative, confirming bearish trend.
- Resistance zones: ₹430–440 (50 DMA), ₹490–500 (200 DMA).
- Support zones: ₹385–390 immediate, deeper support at ₹370.
- Trend status: Bearish with consolidation near support levels.
Entry Zone: ₹385–390 (risk-managed accumulation)
Exit Zone: ₹430–440 (short-term profit booking)
Stop-Loss: Below ₹370
Positive
- Strong ROCE (29.8%) and ROE (28.3%) highlight efficient capital use.
- Low debt-to-equity ratio (0.03) ensures financial stability.
- Dividend yield of 2.50% adds shareholder value.
Limitation
- Stock trading below both 50 DMA and 200 DMA indicates technical weakness.
- Quarterly PAT declined (₹166 Cr vs ₹339 Cr), showing earnings pressure.
- Volume participation significantly below average, limiting momentum confirmation.
Company Negative News
- Decline in FII holdings (-0.46%) shows reduced foreign investor confidence.
- Quarterly profit variation (-12.3%) highlights earnings volatility.
Company Positive News
- DII holdings increased (+0.19%), showing domestic institutional support.
- Strong ROE and ROCE metrics despite near-term earnings decline.
Industry
- Industry PE at 43.0 is significantly higher than EMAMILTD’s P/E (20.6), suggesting undervaluation relative to peers.
- Consumer goods sector remains resilient with steady demand trends.
Conclusion
EMAMILTD is oversold and consolidating near support levels, with bearish momentum confirmed by MACD and weak volumes. Entry near ₹385–390 offers a cautious setup, with exits around ₹430–440. Fundamentals remain strong with high ROE and ROCE, but short-term traders should exercise caution due to declining profits and weak technical signals.
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