EMAMILTD - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.1

📉 EMAMILTD is currently in a reversing phase, with bearish momentum indicators and price action below key moving averages.

📊 Technical Overview

• Trend Status: Reversing — price has declined from ₹743 to ₹534, with a weak 52-week index of 11.2%.
• Moving Averages: Price is below both 50 DMA (₹562) and 200 DMA (₹586), confirming short-term and medium-term bearish sentiment.
• RSI (38.3): Near oversold territory, indicating weak momentum and potential for a technical bounce.
• MACD (-7.25): Negative crossover supports continued bearish pressure.
• Bollinger Bands: Price near lower band, suggesting volatility and possible short-term support.
• Volume: Below average (2.78L vs 3.57L), showing reduced participation and cautious sentiment.

📌 Entry & Exit Zones

• Support Zone: ₹520–₹530 — potential entry zone if reversal signals emerge.
• Resistance Zone: ₹560–₹570 — ideal for exit or partial profit booking.
• Breakout Level: ₹590+ — crossing this could signal trend recovery.

✅ Positive

• Strong ROCE (34.0%) and ROE (31.5%) reflect excellent capital efficiency.
• Zero debt and healthy dividend yield (1.51%) support financial stability.
• PEG ratio of 34.8 suggests long-term growth expectations.
• EPS of ₹19.4 and consistent profitability.

⚠️ Limitation

• Price trading below key moving averages with bearish MACD and weak RSI.
• Low 52-week index and declining price action suggest underperformance.
• Volume below average, indicating lack of strong conviction.

📰 Company Negative News

• FII holding declined by 0.96%, reflecting reduced foreign investor confidence.
• Quarterly PAT dropped from ₹190 Cr to ₹163 Cr, indicating earnings moderation.

🌟 Company Positive News

• DII holding increased by 0.94%, showing domestic institutional support.
• Strong fundamentals and potential for technical rebound near support levels.

🏭 Industry

• Operates in FMCG and personal care, a sector driven by consumer demand and brand loyalty.
• Industry P/E (51.8) is significantly higher than the stock’s (27.5), indicating potential undervaluation.

🧾 Conclusion

• EMAMILTD is technically weak in the short term with bearish indicators and declining price action.
• Entry near ₹520–₹530 only if reversal signs strengthen; watch for breakout above ₹590.
• Long-term investors may hold for fundamentals and valuation; short-term traders should remain cautious and monitor support levels.