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GODREJCP - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.7

Last Updated Time : 04 May 26, 11:57 am

Technical Rating: 3.7

Stock Code GODREJCP Market Cap 1,09,190 Cr. Current Price 1,067 ₹ High / Low 1,309 ₹
Stock P/E 78.2 Book Value 78.8 ₹ Dividend Yield 1.87 % ROCE 19.3 %
ROE 14.9 % Face Value 1.00 ₹ DMA 50 1,099 ₹ DMA 200 1,153 ₹
Chg in FII Hold -1.47 % Chg in DII Hold 1.51 % PAT Qtr 431 Cr. PAT Prev Qtr 356 Cr.
RSI 45.7 MACD 4.40 Volume 17,68,931 Avg Vol 1Wk 10,10,253
Low price 967 ₹ High price 1,309 ₹ PEG Ratio -36.2 Debt to equity 0.33
52w Index 29.3 % Qtr Profit Var 26.1 % EPS 13.1 ₹ Industry PE 42.5

📈 Chart & Trend: GODREJCP is trading below both its 50 DMA (1,099 ₹) and 200 DMA (1,153 ₹), indicating medium-term weakness. RSI at 45.7 shows neutral momentum leaning bearish, while MACD at 4.40 remains mildly positive but weak. Bollinger Bands suggest price is near the lower band, pointing to consolidation with downside risk.

🔎 Momentum Signals: Current volume (17.7 lakh) is significantly higher than the 1-week average (10.1 lakh), showing strong participation. However, price action remains weak, suggesting distribution rather than accumulation.

🎯 Entry Zone: 1,030–1,050 ₹ (support near recent lows)

🚪 Exit Zone: 1,120–1,140 ₹ (resistance near 200 DMA)

📊 Trend Status: Consolidating with bearish bias.

Positive

  • Quarterly PAT rose to 431 Cr. from 356 Cr. (+26.1%).
  • DII holdings increased (+1.51%), showing strong domestic institutional support.
  • Dividend yield at 1.87% provides steady income.
  • Strong brand presence in FMCG sector ensures demand stability.

Limitation

  • High P/E (78.2) compared to industry average (42.5), indicating overvaluation.
  • PEG ratio (-36.2) reflects poor growth prospects relative to valuation.
  • ROCE (19.3%) and ROE (14.9%) are moderate compared to peers.
  • Trading below both 50 DMA and 200 DMA confirms technical weakness.

Company Negative News

  • Decline in FII holdings (-1.47%) signals reduced foreign investor confidence.
  • Weak technical momentum despite strong fundamentals.

Company Positive News

  • Strong quarterly earnings growth and EPS improvement (13.1 ₹).
  • Domestic institutional inflows (+1.51%) provide stability.

Industry

  • Industry P/E at 42.5 reflects premium valuations across FMCG sector.
  • Sector supported by steady demand and consumer staples resilience.

Conclusion

GODREJCP is consolidating with bearish bias, trading below key moving averages despite strong earnings growth. Entry near 1,030–1,050 ₹ offers cautious accumulation, while profit booking is advised near 1,120–1,140 ₹. Short-term outlook remains weak, but long-term prospects are supported by brand strength and domestic institutional support.

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