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ESCORTS - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.7

Last Updated Time : 04 May 26, 11:56 am

Technical Rating: 3.7

Stock Code ESCORTS Market Cap 36,266 Cr. Current Price 3,242 ₹ High / Low 4,180 ₹
Stock P/E 27.4 Book Value 1,064 ₹ Dividend Yield 0.86 % ROCE 13.7 %
ROE 12.8 % Face Value 10.0 ₹ DMA 50 3,256 ₹ DMA 200 3,434 ₹
Chg in FII Hold 0.46 % Chg in DII Hold -0.54 % PAT Qtr 403 Cr. PAT Prev Qtr 321 Cr.
RSI 52.0 MACD 39.0 Volume 86,314 Avg Vol 1Wk 96,699
Low price 2,710 ₹ High price 4,180 ₹ PEG Ratio 1.45 Debt to equity 0.01
52w Index 36.2 % Qtr Profit Var 38.7 % EPS 213 ₹ Industry PE 27.8

📈 Chart Patterns: Price is consolidating near the 50 DMA (3,256 ₹) and below the 200 DMA (3,434 ₹). Trendlines show sideways movement with support near 3,200 ₹ and resistance around 3,350–3,400 ₹.

📊 Moving Averages: Current price (3,242 ₹) is almost equal to the 50 DMA but below the 200 DMA, indicating short-term stability but medium-term weakness.

📉 RSI: At 52.0, RSI is neutral, showing balanced momentum without strong buying or selling pressure.

📊 MACD: Positive at 39.0, suggesting bullish crossover and short-term upside potential.

📉 Bollinger Bands: Price near mid-band, reflecting consolidation with limited volatility expansion.

📊 Volume Trends: Current volume (86K) is slightly below 1-week average (96K), showing reduced participation and lack of breakout strength.

🎯 Momentum Signals: Neutral to mildly bullish. MACD supports short-term upside, but volume and price below 200 DMA limit strength.

💹 Entry Zone: 3,200–3,230 ₹ (support levels).

💹 Exit Zone: 3,350–3,400 ₹ (resistance levels).

📌 Trend Status: Consolidating with mild bullish bias.


Positive

  • Strong EPS of 213 ₹ supports valuation strength.
  • Low debt-to-equity ratio (0.01) shows financial stability.
  • Quarterly PAT growth (403 Cr. vs 321 Cr.) highlights earnings momentum.
  • MACD positive crossover supports short-term bullishness.

Limitation

  • Price below 200 DMA indicates medium-term weakness.
  • Volume below average, limiting breakout confirmation.
  • ROE (12.8%) and ROCE (13.7%) are moderate compared to peers.
  • DII holdings reduced (-0.54%), showing weaker domestic support.

Company Negative News

  • Decline in DII holdings (-0.54%).
  • Moderate profitability ratios limit valuation appeal.

Company Positive News

  • FII holdings increased (+0.46%), showing foreign investor confidence.
  • Quarterly PAT growth (+38.7%) highlights operational strength.
  • Dividend yield of 0.86% provides shareholder returns.

Industry

  • Automobile and farm equipment sector remains cyclical but supported by rural demand.
  • Industry PE at 27.8 is aligned with ESCORTS’s P/E (27.4), suggesting fair valuation.

Conclusion

⚖️ ESCORTS is consolidating with mild bullish bias, supported by MACD and earnings growth. Entry near 3,200–3,230 ₹ offers a favorable setup, with exits around 3,350–3,400 ₹. Long-term investors may hold given strong EPS and low debt, while short-term traders should monitor volume and price action near resistance levels for breakout confirmation.

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