ETERNAL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | ETERNAL | Market Cap | 2,34,048 Cr. | Current Price | 243 ₹ | High / Low | 368 ₹ |
| Stock P/E | 92.4 | Book Value | 37.1 ₹ | Dividend Yield | 0.00 % | ROCE | 7.34 % |
| ROE | 6.55 % | Face Value | 1.00 ₹ | DMA 50 | 261 ₹ | DMA 200 | 278 ₹ |
| Chg in FII Hold | -2.80 % | Chg in DII Hold | 2.57 % | PAT Qtr | 657 Cr. | PAT Prev Qtr | 691 Cr. |
| RSI | 46.2 | MACD | -12.5 | Volume | 7,78,85,872 | Avg Vol 1Wk | 7,64,89,519 |
| Low price | 190 ₹ | High price | 368 ₹ | PEG Ratio | 1.84 | Debt to equity | 0.01 |
| 52w Index | 29.6 % | Qtr Profit Var | 33.0 % | EPS | 2.62 ₹ | Industry PE | 39.7 |
📉 Chart & Trend: ETERNAL is trading at ₹243, below both its 50 DMA (₹261) and 200 DMA (₹278). This indicates short-term and medium-term weakness. The stock is in a consolidation-to-downtrend
📊 Momentum Indicators:
- RSI at 46.2 shows neutral-to-weak momentum, not oversold yet.
- MACD at -12.5 confirms bearish crossover.
- Bollinger Bands: Price is near the mid-to-lower band, suggesting consolidation with downside bias.
- Volume is slightly above average (7,78,85,872 vs 7,64,89,519), showing active participation but no strong accumulation.
📈 Support & Resistance:
- Immediate support: ₹230–235 zone.
- Strong support: ₹190 (recent low).
- Resistance zones: ₹261 (50 DMA) and ₹278 (200 DMA).
- Optimal entry: ₹230–240 near support.
- Exit zone: ₹260–270 if rebound occurs.
🔎 Trend Status: The stock is consolidating with bearish bias, awaiting breakout above 50 DMA for reversal confirmation.
Positive
- EPS of ₹2.62 shows consistent earnings base.
- DII holding increased by +2.57%, reflecting strong domestic institutional support.
- PAT remains stable at ₹657 Cr despite slight decline from previous quarter.
- Low debt-to-equity ratio (0.01) indicates robust financial health.
Limitation
- Price below both 50 DMA and 200 DMA signals technical weakness.
- High P/E of 92.4 compared to industry PE of 39.7 suggests premium valuation.
- ROCE (7.34%) and ROE (6.55%) are weak, showing poor capital efficiency.
Company Negative News
- FII holding decreased by -2.80%, showing reduced foreign investor confidence.
- PAT declined slightly from ₹691 Cr to ₹657 Cr, indicating earnings pressure.
Company Positive News
- DII holding increased by +2.57%, reflecting strong domestic institutional confidence.
- Quarterly profit variation (+33%) highlights operational improvement despite valuation concerns.
Industry
- Sector remains growth-oriented but cyclical, influenced by broader market sentiment.
- Industry PE at 39.7 is far lower than ETERNAL’s PE (92.4), suggesting overvaluation relative to peers.
Conclusion
📌 ETERNAL is technically weak, consolidating below key moving averages with bearish momentum. Entry is favorable around ₹230–240 with stop-loss below ₹225. Short-term rebound may target ₹260–270, but sustained breakout requires volume confirmation. Fundamentally challenged with weak ROCE/ROE and high valuation, making it risky despite institutional support and stable earnings.
Would you like me to extend this into a peer benchmarking overlay against large-cap players in the same sector to highlight relative strength and compounding opportunities?