ETERNAL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | ETERNAL | Market Cap | 2,38,393 Cr. | Current Price | 247 ₹ | High / Low | 368 ₹ |
| Stock P/E | 89.8 | Book Value | 38.4 ₹ | Dividend Yield | 0.00 % | ROCE | 8.36 % |
| ROE | 7.46 % | Face Value | 1.00 ₹ | DMA 50 | 251 ₹ | DMA 200 | 270 ₹ |
| Chg in FII Hold | -3.63 % | Chg in DII Hold | 3.27 % | PAT Qtr | 705 Cr. | PAT Prev Qtr | 657 Cr. |
| RSI | 48.8 | MACD | 3.28 | Volume | 7,59,16,583 | Avg Vol 1Wk | 9,57,75,744 |
| Low price | 213 ₹ | High price | 368 ₹ | PEG Ratio | 0.28 | Debt to equity | 0.01 |
| 52w Index | 22.1 % | Qtr Profit Var | 21.1 % | EPS | 2.75 ₹ | Industry PE | 38.0 |
📈 Chart Patterns: Price is trading near the 50 DMA (251 ₹) but below the 200 DMA (270 ₹), showing short-term support but medium-term weakness. Trendlines suggest consolidation with resistance near 260–270 ₹ and support around 240–245 ₹.
📊 Moving Averages: Current price (247 ₹) is slightly below the 50 DMA and well below the 200 DMA, reflecting weak momentum.
📉 RSI: At 48.8, RSI is neutral-to-weak, showing indecision and lack of strong momentum.
📊 MACD: Positive at 3.28, indicating mild bullish crossover but not strong enough to confirm trend reversal.
📉 Bollinger Bands: Price near mid-band, suggesting consolidation with limited volatility expansion.
📊 Volume Trends: Current volume (7.59 Cr.) is below 1-week average (9.57 Cr.), showing reduced participation and lack of strong buying interest.
🎯 Momentum Signals: Neutral. MACD supports mild upside, but RSI and volume trends confirm weak momentum.
💹 Entry Zone: 240–245 ₹ (support levels).
💹 Exit Zone: 260–270 ₹ (resistance levels).
📌 Trend Status: Consolidating with weak bias.
Positive
- DII holdings increased (+3.27%), showing strong domestic institutional support.
- Debt-to-equity ratio at 0.01 indicates near debt-free status.
- Quarterly PAT improved to 705 Cr. from 657 Cr., showing earnings growth.
- PEG ratio at 0.28 suggests potential value if earnings sustain.
Limitation
- Extremely high P/E (89.8) compared to industry PE (38.0), making valuation unattractive.
- Weak ROE (7.46%) and ROCE (8.36%) highlight poor capital efficiency.
- Price below 200 DMA indicates medium-term weakness.
- Volume below average, limiting breakout confirmation.
Company Negative News
- FII holdings reduced (-3.63%), showing foreign investor caution.
- Low profitability metrics raise concerns about sustainability.
Company Positive News
- DII support indicates domestic institutional optimism.
- Quarterly profit variation (+21.1%) highlights operational improvement.
Industry
- Industry PE at 38.0 is far lower than ETERNAL’s P/E, suggesting overvaluation.
- Sector remains competitive, with peers offering stronger fundamentals.
Conclusion
⚖️ ETERNAL is consolidating with weak fundamentals and stretched valuations. Entry near 240–245 ₹ is viable only for short-term momentum trades with strict stop-loss discipline. Exit opportunities lie around 260–270 ₹. Long-term investors should remain cautious until ROE, ROCE, and earnings improve significantly.