GODREJPROP - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.8

📊 Chart Patterns: GODREJPROP is trading below both its 50 DMA (2,102 ₹) and 200 DMA (2,194 ₹), reflecting a bearish structure. The price has corrected sharply from its 52-week high (3,001 ₹) and is hovering near support zones around 1,870–1,950 ₹.

📈 Moving Averages:

- 50 DMA: 2,102 ₹ (resistance)

- 200 DMA: 2,194 ₹ (major resistance)

The stock remains under both averages, confirming a downtrend.

📉 RSI: 38.9 → Near oversold territory, suggesting weak momentum but potential for a short-term bounce.

📉 MACD: -34.4 → Bearish crossover, confirming downward momentum.

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

📊 Volume Trends: Current volume (5.98 lakh) is higher than 1-week average (3.86 lakh), showing increased activity, possibly due to accumulation near support.

🎯 Momentum Signals:

- Short-term bias: Bearish with oversold signals

- Entry Zone: 1,870–1,950 ₹ (near strong support)

- Exit Zone: 2,100–2,150 ₹ (near 50 DMA resistance)

- Breakout potential above 2,200 ₹ could target 2,350–2,400 ₹.

📌 Trend Status: The stock is in a corrective phase with bearish undertone. Consolidation possible if support near 1,870 ₹ holds.

Positive

• DII holdings increased (+1.35%), reflecting domestic institutional support.
• Strong book value (581 ₹) compared to current price, offering asset backing.
• Stock trading near strong support levels, offering accumulation opportunity for long-term investors.

Limitation

• Extremely high P/E (161) compared to industry PE (33.7), indicating severe overvaluation.
• Debt-to-equity ratio at 0.89 is relatively high, raising financial risk concerns.
• Weak ROCE (6.46%) and ROE (6.02%) show poor capital efficiency.
• Quarterly PAT dropped sharply (13.1 Cr vs 56.1 Cr), showing earnings pressure.

Company Negative News

• Quarterly profit variation (-93.6%) indicates severe earnings volatility.
• FII holdings decreased (-2.23%), showing reduced foreign investor confidence.

Company Positive News

• DII inflows (+1.35%) reflect strong domestic support.
• Company continues to hold significant market capitalization (61,657 Cr.), showing scale and presence in the sector.

Industry

• Industry PE: 33.7, far lower than GODREJPROP’s inflated P/E, suggesting valuation mismatch.
• Real estate sector remains cyclical, influenced by interest rates and demand trends.

Conclusion

⚖️ GODREJPROP is in a bearish corrective phase with weak fundamentals and high valuations. Entry near 1,870–1,950 ₹ offers a speculative opportunity, while resistance lies at 2,100–2,150 ₹. A breakout above 2,200 ₹ could trigger reversal towards 2,350–2,400 ₹. Investors should remain cautious due to extreme valuations and earnings volatility, while traders may attempt short-term plays near support zones.