FLUOROCHEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | FLUOROCHEM | Market Cap | 34,361 Cr. | Current Price | 3,133 ₹ | High / Low | 4,098 ₹ |
| Stock P/E | 50.1 | Book Value | 620 ₹ | Dividend Yield | 0.10 % | ROCE | 11.0 % |
| ROE | 9.28 % | Face Value | 1.00 ₹ | DMA 50 | 3,328 ₹ | DMA 200 | 3,500 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | 0.08 % | PAT Qtr | 139 Cr. | PAT Prev Qtr | 195 Cr. |
| RSI | 41.9 | MACD | -75.3 | Volume | 95,922 | Avg Vol 1Wk | 88,984 |
| Low price | 2,917 ₹ | High price | 4,098 ₹ | PEG Ratio | -5.68 | Debt to equity | 0.22 |
| 52w Index | 18.4 % | Qtr Profit Var | -8.86 % | EPS | 61.4 ₹ | Industry PE | 25.7 |
📊 Chart & Trend: FLUOROCHEM is trading at ₹3,133, below both its 50 DMA (₹3,328) and 200 DMA (₹3,500), reflecting weakness. RSI at 41.9 suggests neutral-to-bearish momentum, while MACD (-75.3) confirms strong bearish undertones. Bollinger Bands show price near the lower band, signaling selling pressure and consolidation.
📈 Momentum Signals: Volume (95K) is slightly above the 1-week average (88K), showing increased activity despite weakness. RSI below 45 indicates mild bearishness, while MACD suggests continuation of downward bias.
💡 Entry Zone: ₹3,080–₹3,120 (support zone).
🚪 Exit Zone: ₹3,300–₹3,350 (resistance). A breakout above ₹3,350 could open room toward ₹3,450.
📌 Trend Status: The stock is currently consolidating with bearish bias after correcting from its high of ₹4,098, with sideways-to-downward movement around key averages.
Positive
- Book value of ₹620 provides margin of safety.
- DII holdings increased (+0.08%), signaling domestic institutional support.
- EPS of ₹61.4 reflects profitability.
- Low debt-to-equity ratio (0.22) ensures financial stability.
Limitation
- Stock P/E (50.1) is much higher than industry PE (25.7), suggesting stretched valuation.
- ROCE (11.0%) and ROE (9.28%) are moderate compared to sector leaders.
- PEG ratio (-5.68) indicates valuation concerns relative to growth trajectory.
Company Negative News
- Quarterly PAT declined (₹139 Cr vs ₹195 Cr), showing earnings pressure.
- Stock corrected sharply from its 52-week high of ₹4,098, showing volatility.
- Decline in FII holdings (-0.05%) signals reduced foreign investor confidence.
Company Positive News
- EPS of ₹61.4 reflects profitability despite earnings decline.
- Strong rally from ₹2,917 to ₹4,098 highlights momentum strength.
- Low debt-to-equity ratio (0.22) ensures balance sheet stability.
Industry
- Chemicals and specialty gases sector benefits from industrial demand and global growth opportunities.
- Industry PE (25.7) is much lower than FLUOROCHEM’s P/E, suggesting premium valuation.
- Peers trade at moderate valuations, positioning FLUOROCHEM as a premium but cyclical play.
Conclusion
⚖️ FLUOROCHEM is consolidating with bearish undertones, trading below key moving averages. Fundamentals show profitability and low debt, but valuation is stretched and earnings have weakened sequentially. Entry near ₹3,080–₹3,120 offers a margin of safety, with exits around ₹3,300–₹3,350. Long-term investors should be cautious due to valuation risks, while traders may look for short-term rebounds or momentum trades above ₹3,350.
Selva, would you like me to extend this into a peer benchmarking overlay against chemical sector players like Navin Fluorine, SRF, and Deepak Nitrite? That would highlight relative strength and sector rotation opportunities alongside FLUOROCHEM.