GODREJAGRO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | GODREJAGRO | Market Cap | 11,325 Cr. | Current Price | 588 ₹ | High / Low | 876 ₹ |
| Stock P/E | 20.8 | Book Value | 141 ₹ | Dividend Yield | 1.87 % | ROCE | 24.4 % |
| ROE | 20.9 % | Face Value | 10.0 ₹ | DMA 50 | 593 ₹ | DMA 200 | 642 ₹ |
| Chg in FII Hold | -0.92 % | Chg in DII Hold | 0.20 % | PAT Qtr | 131 Cr. | PAT Prev Qtr | 177 Cr. |
| RSI | 48.2 | MACD | -3.13 | Volume | 1,09,625 | Avg Vol 1Wk | 1,47,000 |
| Low price | 506 ₹ | High price | 876 ₹ | PEG Ratio | 1.75 | Debt to equity | 0.57 |
| 52w Index | 22.1 % | Qtr Profit Var | -21.1 % | EPS | 27.5 ₹ | Industry PE | 25.5 |
📊 Chart & Trend: GODREJAGRO is trading at ₹588, slightly below its 50 DMA (₹593) and 200 DMA (₹642), reflecting mild weakness. RSI at 48.2 suggests neutral momentum, while MACD (-3.13) indicates bearish undertones. Bollinger Bands show price near the mid-zone, signaling consolidation.
📈 Momentum Signals: Volume (1.09L) is lower than the 1-week average (1.47L), showing reduced participation. RSI near 50 suggests indecision, neither overbought nor oversold.
💡 Entry Zone: ₹570–₹585 (support zone).
🚪 Exit Zone: ₹600–₹620 (resistance). A breakout above ₹620 could open room toward ₹650.
📌 Trend Status: The stock is currently consolidating with bearish bias after correcting from its high of ₹876, with sideways movement around key averages.
Positive
- Strong ROCE (24.4%) and ROE (20.9%) highlight efficient capital use.
- Dividend yield of 1.87% adds income appeal.
- EPS of ₹27.5 reflects profitability.
- Book value of ₹141 provides margin of safety.
Limitation
- Stock P/E (20.8) is slightly below industry PE (25.5), but valuation comfort is limited given earnings decline.
- Quarterly PAT declined (₹131 Cr vs ₹177 Cr), showing earnings pressure.
- Debt-to-equity ratio of 0.57 is relatively high compared to peers.
Company Negative News
- Decline in FII holdings (-0.92%) signals reduced foreign investor confidence.
- Quarterly profit variation (-21.1%) highlights earnings weakness.
- Stock corrected sharply from its 52-week high of ₹876, showing volatility.
Company Positive News
- DII holdings increased (+0.20%), signaling domestic institutional support.
- Strong ROCE and ROE indicate operational efficiency.
- Dividend yield of 1.87% enhances shareholder returns.
Industry
- Agribusiness sector benefits from rising demand for food and agro-products.
- Industry PE (25.5) is slightly higher than GODREJAGRO’s P/E, suggesting relative undervaluation.
- Peers trade at moderate valuations, positioning GODREJAGRO as a value play with sector tailwinds.
Conclusion
⚖️ GODREJAGRO is consolidating with bearish bias, trading below key moving averages. Fundamentals remain strong (ROCE/ROE, dividend yield, book value), but earnings decline and higher debt raise caution. Entry near ₹570–₹585 offers a margin of safety, with exits around ₹600–₹620. Long-term investors may hold for agribusiness sector strength, while traders should wait for a breakout above ₹620 for momentum trades.
Selva, would you like me to extend this into a peer benchmarking overlay against agribusiness players like UPL, Rallis India, and PI Industries? That would highlight relative strength and sector rotation opportunities alongside GODREJAGRO.