GODREJIND - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.9

📊 Chart Patterns: GODREJIND is trading below both its 50 DMA (1,064 ₹) and 200 DMA (1,102 ₹), reflecting a bearish structure. The price has corrected significantly from its 52-week high (1,392 ₹) and is hovering near support zones around 980–1,000 ₹.

📈 Moving Averages:

- 50 DMA: 1,064 ₹ (resistance)

- 200 DMA: 1,102 ₹ (major resistance)

The stock remains under both averages, confirming a downtrend.

📉 RSI: 38.4 → Near oversold territory, suggesting weak momentum but potential for a short-term bounce.

📉 MACD: -16.0 → Bearish crossover, confirming downward momentum.

📊 Bollinger Bands: Price near lower band, indicating oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (67,511) is higher than 1-week average (40,172), showing increased activity, possibly due to accumulation near support.

🎯 Momentum Signals:

- Short-term bias: Bearish with oversold signals

- Entry Zone: 980–1,000 ₹ (near support)

- Exit Zone: 1,060–1,080 ₹ (near 50 DMA resistance)

- Breakout potential above 1,100 ₹ could target 1,150–1,180 ₹.

📌 Trend Status: The stock is in a corrective phase with bearish undertone. Consolidation possible if support near 980 ₹ holds.

Positive

• Quarterly PAT turned positive (99 Cr vs -30 Cr), showing recovery signs.
• DII holdings increased (+0.23%), reflecting domestic institutional support.
• Stock trading near strong support levels, offering accumulation opportunity.

Limitation

• Extremely high P/E (36,463) compared to industry PE (23.7), indicating severe overvaluation.
• Debt-to-equity ratio at 6.26 is very high, raising financial risk concerns.
• Weak ROCE (8.13%) and ROE (9.04%) show poor capital efficiency.
• EPS of only 0.03 ₹ highlights weak earnings base.

Company Negative News

• Quarterly profit variation (-35.1%) indicates earnings volatility.
• FII holdings decreased (-0.54%), showing reduced foreign investor confidence.

Company Positive News

• Turnaround in profitability with PAT recovery in the latest quarter.
• Domestic institutions increased stake, signaling confidence in long-term prospects.

Industry

• Industry PE: 23.7, far lower than GODREJIND’s inflated P/E, suggesting valuation mismatch.
• Conglomerate sector remains cyclical with mixed performance across verticals.

Conclusion

⚖️ GODREJIND is in a bearish corrective phase with weak fundamentals and high leverage. Entry near 980–1,000 ₹ offers a speculative opportunity, while resistance lies at 1,060–1,080 ₹. A breakout above 1,100 ₹ could trigger reversal towards 1,150–1,180 ₹. Investors should remain cautious due to extreme valuations and high debt, while traders may attempt short-term plays near support zones.