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ENDURANCE - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.4

Last Updated Time : 03 Feb 26, 05:12 pm

Technical Rating: 3.4

Stock Code ENDURANCE Market Cap 34,111 Cr. Current Price 2,425 ₹ High / Low 3,080 ₹
Stock P/E 48.8 Book Value 324 ₹ Dividend Yield 0.41 % ROCE 21.5 %
ROE 16.1 % Face Value 10.0 ₹ DMA 50 2,568 ₹ DMA 200 2,567 ₹
Chg in FII Hold -0.12 % Chg in DII Hold 0.15 % PAT Qtr 188 Cr. PAT Prev Qtr 166 Cr.
RSI 42.4 MACD -58.8 Volume 18,965 Avg Vol 1Wk 50,272
Low price 1,556 ₹ High price 3,080 ₹ PEG Ratio 2.62 Debt to equity 0.02
52w Index 57.0 % Qtr Profit Var 1.49 % EPS 48.6 ₹ Industry PE 28.0

📈 Technical Analysis

  • Chart Patterns: Stock corrected from 3,080 ₹ highs and is consolidating near 2,425 ₹, showing weakness but holding above long-term support levels.
  • Moving Averages: Current price (2,425 ₹) is below both 50 DMA (2,568 ₹) and 200 DMA (2,567 ₹), indicating short-term bearishness despite long-term stability.
  • RSI: At 42.4, the stock is neutral, neither oversold nor overbought.
  • MACD: Negative (-58.8), confirming bearish momentum persists.
  • Bollinger Bands: Price is near the lower band, suggesting oversold conditions but not yet a reversal signal.
  • Volume Trends: Current volume (18,965) is significantly lower than 1-week average (50,272), showing weak participation.

📊 Momentum & Signals

  • Short-Term Momentum: Weak, with potential for sideways consolidation.
  • Support Zones: 2,400 ₹ (near-term), 2,250 ₹ (major support).
  • Resistance Zones: 2,568 ₹ (50 DMA), 2,650 ₹ (trendline resistance), 2,800 ₹ (higher resistance).
  • Entry Zone: 2,400–2,430 ₹ if RSI stabilizes.
  • Exit Zone: 2,568–2,650 ₹ on rebound; strict stop-loss below 2,400 ₹.
  • Trend Status: Stock is consolidating after correction, awaiting breakout direction.

✅ Positive

  • Strong fundamentals with ROCE (21.5 %) and ROE (16.1 %) indicating efficient capital use.
  • Low debt-to-equity ratio (0.02) shows excellent financial stability.
  • EPS at 48.6 ₹ supports earnings strength.
  • Dividend yield at 0.41 % provides modest income support.

⚠️ Limitation

  • Stock trading below both 50 DMA and 200 DMA indicates weak technical strength.
  • Quarterly PAT growth was modest (188 Cr. vs 166 Cr.), showing limited earnings momentum.
  • High P/E (48.8) compared to industry PE (28.0) suggests premium valuation.
  • PEG ratio at 2.62 indicates valuation is stretched relative to growth.

📉 Company Negative News

  • Quarterly profit variance (+1.49 %) highlights slow earnings growth.
  • FII holdings decreased (-0.12 %), showing reduced foreign investor confidence.

📈 Company Positive News

  • DII holdings increased (+0.15 %), showing domestic institutional support.
  • Consistent profitability with strong ROCE and ROE metrics.

🏭 Industry

  • Industry PE at 28.0 is lower than company PE (48.8), suggesting ENDURANCE trades at a premium.
  • Automobile components sector outlook remains positive with cyclical demand recovery potential.

🔎 Conclusion

  • ENDURANCE is in a consolidation phase after correction, with neutral RSI but bearish MACD.
  • Short-term traders may consider entry near 2,400–2,430 ₹ with exit around 2,568–2,650 ₹.
  • Long-term investors may hold due to strong fundamentals, but should be cautious of premium valuations and slow earnings growth.

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