GODFRYPHLP - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.6

📊 Chart Patterns: GODFRYPHLP is trading below both its 50 DMA (2,976 ₹) and 200 DMA (2,841 ₹), indicating short-term weakness. The price action suggests a corrective phase after failing to sustain near recent highs.

📈 Moving Averages:

- 50 DMA: 2,976 ₹ (resistance)

- 200 DMA: 2,841 ₹ (resistance/support zone)

The stock is currently below both averages, showing bearish bias.

📉 RSI: 39.1 → Approaching oversold territory, suggesting limited downside but weak momentum.

📉 MACD: -57.4 → Strong bearish crossover, confirming downward momentum.

📊 Bollinger Bands: Price near lower band, indicating oversold conditions and potential for short-term bounce.

📊 Volume Trends: Current volume (89,721) is below 1-week average (1,30,810), showing reduced participation and lack of strong buying interest.

🎯 Momentum Signals:

- Short-term bias: Bearish with oversold signals

- Entry Zone: 2,750–2,800 ₹ (near support)

- Exit Zone: 2,950–3,000 ₹ (near 50 DMA resistance)

- Breakout potential above 3,000 ₹ could target 3,200–3,300 ₹.

📌 Trend Status: Currently in a corrective phase, leaning bearish. Consolidation possible if support near 2,750 ₹ holds.

Positive

• Strong ROCE (29.4%) and ROE (22.2%) highlight efficient capital usage.
• Low debt-to-equity ratio (0.04) ensures financial stability.
• EPS of 79.6 ₹ supports earnings strength.
• Dividend yield of 1.15% adds shareholder value.

Limitation

• Stock P/E (35.0) is higher than industry PE (26.5), suggesting premium valuation.
• Quarterly PAT declined (304 Cr vs 365 Cr), showing earnings pressure.
• FII holdings decreased (-1.38%), indicating reduced foreign investor confidence.

Company Negative News

• Recent quarterly profit decline (-19.2%) raises concerns on growth sustainability.

Company Positive News

• DII holdings increased (+0.27%), showing domestic institutional support.
• Strong long-term fundamentals with consistent profitability and low leverage.

Industry

• Industry PE: 26.5, lower than GODFRYPHLP’s PE of 35.0, suggesting overvaluation.
• Sector remains competitive with cyclical demand patterns.

Conclusion

⚖️ GODFRYPHLP is in a corrective phase with bearish short-term signals but strong long-term fundamentals. Entry near 2,750–2,800 ₹ offers risk-managed accumulation, while resistance lies at 2,950–3,000 ₹. A breakout above 3,000 ₹ could revive momentum towards 3,200–3,300 ₹. Investors may accumulate cautiously, while traders should wait for confirmation above resistance.