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ESCORTS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | ESCORTS | Market Cap | 39,130 Cr. | Current Price | 3,498 ₹ | High / Low | 4,180 ₹ |
| Stock P/E | 32.3 | Book Value | 1,064 ₹ | Dividend Yield | 0.80 % | ROCE | 13.7 % |
| ROE | 12.8 % | Face Value | 10.0 ₹ | DMA 50 | 3,642 ₹ | DMA 200 | 3,567 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.40 % | PAT Qtr | 321 Cr. | PAT Prev Qtr | 315 Cr. |
| RSI | 42.6 | MACD | -86.1 | Volume | 1,10,158 | Avg Vol 1Wk | 1,14,037 |
| Low price | 2,776 ₹ | High price | 4,180 ₹ | PEG Ratio | 1.71 | Debt to equity | 0.01 |
| 52w Index | 51.4 % | Qtr Profit Var | 6.12 % | EPS | 209 ₹ | Industry PE | 32.8 |
📈 Technical Analysis
- Chart Patterns: Stock corrected from 4,180 ₹ highs and is consolidating near 3,498 ₹, showing weakness but holding above 2,776 ₹ support.
- Moving Averages: Current price (3,498 ₹) is below both 50 DMA (3,642 ₹) and 200 DMA (3,567 ₹), confirming short-term bearishness.
- RSI: At 42.6, the stock is neutral, neither oversold nor overbought.
- MACD: Negative (-86.1), indicating bearish momentum persists.
- Bollinger Bands: Price is near the lower band, suggesting oversold conditions but not yet a reversal signal.
- Volume Trends: Current volume (1,10,158) is slightly below 1-week average (1,14,037), showing moderate participation.
📊 Momentum & Signals
- Short-Term Momentum: Weak, with potential for sideways consolidation.
- Support Zones: 3,450 ₹ (near-term), 3,300 ₹ (major support).
- Resistance Zones: 3,642 ₹ (50 DMA), 3,750 ₹ (trendline resistance), 4,000 ₹ (higher resistance).
- Entry Zone: 3,450–3,500 ₹ if RSI stabilizes.
- Exit Zone: 3,642–3,750 ₹ on rebound; strict stop-loss below 3,450 ₹.
- Trend Status: Stock is consolidating after correction, awaiting breakout direction.
✅ Positive
- Strong fundamentals with ROCE (13.7 %) and ROE (12.8 %) showing profitability.
- Low debt-to-equity ratio (0.01) indicates excellent financial stability.
- EPS at 209 ₹ supports earnings strength.
- Dividend yield at 0.80 % provides modest income support.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA indicates weak technical strength.
- High P/E (32.3) compared to industry PE (32.8) suggests valuation is at par but not cheap.
- Quarterly profit growth was modest (321 Cr. vs 315 Cr.), showing limited earnings momentum.
📉 Company Negative News
- FII holdings decreased (-0.02 %), showing slight reduction in foreign investor confidence.
- MACD remains strongly negative, signaling continued bearish momentum.
📈 Company Positive News
- DII holdings increased (+0.40 %), showing domestic institutional support.
- Quarterly PAT improved marginally, maintaining profitability.
🏭 Industry
- Industry PE at 32.8 is nearly equal to company PE (32.3), suggesting ESCORTS is fairly valued relative to peers.
- Automobile and farm equipment sector outlook remains stable with cyclical demand recovery potential.
🔎 Conclusion
- ESCORTS is in a consolidation phase after correction, with neutral RSI but bearish MACD.
- Short-term traders may consider entry near 3,450–3,500 ₹ with exit around 3,642–3,750 ₹.
- Long-term investors may hold due to strong fundamentals and sector stability, but should be cautious of modest earnings growth and weak technical signals.