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HAVELLS - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.2

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

Technical Rating: 3.2

Stock Code HAVELLS Market Cap 77,817 Cr. Current Price 1,241 ₹ High / Low 1,624 ₹
Stock P/E 44.7 Book Value 151 ₹ Dividend Yield 0.81 % ROCE 25.1 %
ROE 19.5 % Face Value 1.00 ₹ DMA 50 1,301 ₹ DMA 200 1,410 ₹
Chg in FII Hold -1.03 % Chg in DII Hold 0.97 % PAT Qtr 734 Cr. PAT Prev Qtr 335 Cr.
RSI 43.2 MACD -8.72 Volume 16,04,771 Avg Vol 1Wk 17,97,466
Low price 1,142 ₹ High price 1,624 ₹ PEG Ratio 2.57 Debt to equity 0.03
52w Index 20.4 % Qtr Profit Var 40.6 % EPS 27.2 ₹ Industry PE 45.1

📉 Chart Patterns & Trend: HAVELLS is trading below both its 50 DMA (₹1,301) and 200 DMA (₹1,410), confirming a bearish structure. Current price (₹1,241) is near support at ₹1,142, suggesting weakness with limited upside unless a rebound occurs.

📊 Momentum Indicators: RSI at 43.2 indicates weak momentum, while MACD at -8.72 confirms bearish crossover. Bollinger Bands show price drifting near the lower band, signaling continued pressure.

📈 Volume Trends: Current volume (16.0 lakh) is slightly below average weekly volume (17.9 lakh), reflecting reduced participation and lack of strong buying interest.

🎯 Entry Zone: ₹1,220 – ₹1,240 (near support, potential accumulation zone).

🚪 Exit Zone: ₹1,360 – ₹1,380 (near 50 DMA resistance; profit-taking zone if rebound occurs).

🔎 Status: The stock is consolidating near support but remains in a broader downtrend. Sustained recovery requires price action above ₹1,410 (200 DMA).


Positive

  • Strong ROE (19.5%) and ROCE (25.1%) highlight operational efficiency.
  • Quarterly PAT growth of 40.6% shows earnings momentum.
  • Low debt-to-equity ratio (0.03) ensures financial stability.

Limitation

  • High P/E (44.7) compared to industry average (45.1), limiting valuation comfort.
  • PEG ratio of 2.57 indicates moderate overvaluation relative to growth.
  • Technical weakness with price below both 50 & 200 DMA.

Company Negative News

  • FII holdings decreased (-1.03%), showing reduced foreign investor confidence.
  • MACD negative, suggesting short-term bearish trend.

Company Positive News

  • Quarterly PAT increased from ₹335 Cr to ₹734 Cr.
  • DII holdings increased (+0.97%), reflecting domestic institutional support.
  • EPS at ₹27.2 remains strong.

Industry

  • Consumer electricals sector remains resilient with steady demand.
  • Industry PE at 45.1 highlights competitive valuation environment.

Conclusion

⚠️ HAVELLS is technically weak, trading below key moving averages with bearish momentum. Fundamentals remain strong, but valuations are stretched. Short-term traders may consider entry near ₹1,220–₹1,240 with exits around ₹1,360–₹1,380. Long-term investors should wait for confirmation above ₹1,410 before fresh accumulation.

Would you like me to extend this into a swing-trade overlay comparing HAVELLS with peers like Crompton, V-Guard, and Polycab to highlight relative momentum strength?

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