ETERNAL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | ETERNAL | Market Cap | 2,47,550 Cr. | Current Price | 257 ₹ | High / Low | 368 ₹ |
| Stock P/E | 93.2 | Book Value | 38.4 ₹ | Dividend Yield | 0.00 % | ROCE | 8.36 % |
| ROE | 7.46 % | Face Value | 1.00 ₹ | DMA 50 | 249 ₹ | DMA 200 | 266 ₹ |
| Chg in FII Hold | -3.63 % | Chg in DII Hold | 3.27 % | PAT Qtr | 705 Cr. | PAT Prev Qtr | 657 Cr. |
| RSI | 58.6 | MACD | 0.23 | Volume | 3,90,79,333 | Avg Vol 1Wk | 2,64,84,619 |
| Low price | 213 ₹ | High price | 368 ₹ | PEG Ratio | 0.30 | Debt to equity | 0.01 |
| 52w Index | 28.2 % | Qtr Profit Var | 21.1 % | EPS | 2.75 ₹ | Industry PE | 41.4 |
Chart & Trend Analysis:
ETERNAL is trading at ₹257, slightly above its 50 DMA (₹249) but below its 200 DMA (₹266), reflecting short-term support yet medium-term weakness. RSI at 58.6 indicates neutral-to-positive momentum, while MACD at 0.23 shows a marginally positive crossover. Bollinger Bands are moderately wide, suggesting consolidation with potential breakout. Current volume (3.90 Cr) is higher than the weekly average (2.64 Cr), showing strong participation.
Momentum Signals:
- RSI near 60 signals neutral momentum with mild bullish bias.
- MACD positive but weak, suggesting limited upside.
- Resistance zones: ₹265–270 (200 DMA), ₹300 (major).
- Support zones: ₹250 immediate, deeper support at ₹235–240.
- Trend status: Consolidating with weak bullish bias; reversal possible if price sustains above 266.
Entry Zone: ₹250–255 (conditional accumulation)
Exit Zone: ₹265–275 (profit booking zone)
Stop-Loss: Below ₹240
Positive
- Price near 50 DMA with marginally positive MACD indicates short-term support.
- DII holdings increased (+3.27%), showing strong domestic institutional confidence.
- Low debt-to-equity ratio (0.01) ensures financial stability.
- Quarterly PAT improved (₹705 Cr vs ₹657 Cr), showing earnings growth.
Limitation
- Extremely high P/E (93.2) compared to industry average (41.4).
- Weak ROE (7.46%) and ROCE (8.36%) highlight poor capital efficiency.
- EPS at ₹2.75 remains low relative to valuation.
Company Negative News
- Decline in FII holdings (-3.63%) shows reduced foreign investor confidence.
- Weak profitability metrics raise concerns about long-term sustainability.
Company Positive News
- DII support indicates domestic institutional optimism.
- Quarterly profit variation (+21.1%) highlights recovery momentum.
Industry
- Industry PE at 41.4 is far lower than ETERNAL’s P/E, suggesting overvaluation.
- Sector remains competitive, with stronger peers offering better fundamentals.
Conclusion
ETERNAL is consolidating with weak fundamentals and stretched valuations. Entry near ₹250–255 is viable only for short-term momentum trades with strict stop-loss discipline. Exit opportunities lie around ₹265–275. Long-term investors should remain cautious until ROE, ROCE, and earnings improve significantly.
Would you like me to extend this into a short-term intraday setup, a swing trade roadmap, or a fundamental deep dive?