HBLENGINE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | HBLENGINE | Market Cap | 21,103 Cr. | Current Price | 761 ₹ | High / Low | 1,122 ₹ |
| Stock P/E | 32.2 | Book Value | 70.4 ₹ | Dividend Yield | 0.13 % | ROCE | 27.0 % |
| ROE | 20.2 % | Face Value | 1.00 ₹ | DMA 50 | 834 ₹ | DMA 200 | 769 ₹ |
| Chg in FII Hold | -1.23 % | Chg in DII Hold | 0.18 % | PAT Qtr | 400 Cr. | PAT Prev Qtr | 142 Cr. |
| RSI | 42.5 | MACD | -36.4 | Volume | 41,07,842 | Avg Vol 1Wk | 26,03,323 |
| Low price | 404 ₹ | High price | 1,122 ₹ | PEG Ratio | 0.66 | Debt to equity | 0.04 |
| 52w Index | 49.7 % | Qtr Profit Var | 397 % | EPS | 22.9 ₹ | Industry PE | 24.2 |
📈 Chart & Trend Analysis: HBLENGINE is trading at ₹761, below its 50 DMA (₹834) and slightly below the 200 DMA (₹769), indicating short-term weakness and medium-term pressure. RSI at 42.5 suggests the stock is approaching oversold territory, while MACD at -36.4 confirms bearish momentum. Bollinger Bands show price near the lower band, reflecting selling pressure and possible consolidation.
📊 Volume Trends: Current volume (41.1 lakh) is significantly higher than the 1-week average (26.0 lakh), suggesting strong participation, though the momentum is tilted toward selling pressure.
🎯 Entry Zone: ₹740 – ₹760 (support near 200 DMA)
🚪 Exit Zone: ₹820 – ₹850 (resistance near 50 DMA and upper consolidation zone)
🔎 Trend Status: Consolidating with bearish bias — price is struggling below moving averages, with weak RSI and negative MACD confirming downside pressure. Strong volume suggests volatility, with potential rebound from oversold levels.
Positive ✅
- Strong ROCE (27.0%) and ROE (20.2%) indicate efficient capital use.
- Debt-to-equity ratio of 0.04 shows negligible leverage risk.
- Quarterly PAT growth (₹400 Cr vs ₹142 Cr) highlights strong earnings momentum.
- EPS of ₹22.9 supports valuation strength.
- DII holdings increased (+0.18%), reflecting domestic institutional support.
Limitation ⚠️
- Price trading below both 50 DMA and 200 DMA indicates technical weakness.
- RSI and MACD confirm bearish momentum.
- Dividend yield of 0.13% is negligible for income investors.
- Stock P/E of 32.2 is higher than industry average (24.2), suggesting stretched valuations.
Company Negative News 📉
- Decline in FII holdings (-1.23%) indicates reduced foreign investor confidence.
Company Positive News 📈
- Quarterly profit growth of 397% shows strong recovery.
- EPS of ₹22.9 reflects consistent earnings performance.
Industry 🌐
- Industry P/E at 24.2 suggests sector trades at fair valuations.
- Engineering and battery sector benefits from rising demand in defense, telecom, and energy storage solutions.
Conclusion 📝
HBLENGINE is consolidating with bearish bias, trading below its moving averages with RSI near oversold and negative MACD confirming weakness. Entry near ₹740–₹760 offers margin of safety, while exits around ₹820–₹850 provide profit-taking opportunities. Fundamentally strong with high ROCE, ROE, and strong profit growth, but stretched valuations and declining FII interest limit upside. Traders may look for short-term rebound opportunities, while long-term investors should accumulate cautiously given sector demand.
Would you like me to extend this into a peer benchmarking overlay (comparing HBLENGINE against peers like Exide Industries, Amara Raja Batteries, and Tata Power) so you can evaluate relative strength and sector rotation opportunities?