HOMEFIRST - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | HOMEFIRST | Market Cap | 10,256 Cr. | Current Price | 984 ₹ | High / Low | 1,519 ₹ |
| Stock P/E | 20.7 | Book Value | 386 ₹ | Dividend Yield | 0.38 % | ROCE | 11.4 % |
| ROE | 16.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,105 ₹ | DMA 200 | 1,153 ₹ |
| Chg in FII Hold | 0.83 % | Chg in DII Hold | -1.23 % | PAT Qtr | 140 Cr. | PAT Prev Qtr | 132 Cr. |
| RSI | 33.2 | MACD | -43.8 | Volume | 13,73,642 | Avg Vol 1Wk | 6,63,949 |
| Low price | 839 ₹ | High price | 1,519 ₹ | PEG Ratio | 0.76 | Debt to equity | 2.40 |
| 52w Index | 21.4 % | Qtr Profit Var | 44.0 % | EPS | 49.4 ₹ | Industry PE | 14.1 |
📊 Chart & Trend Analysis: HOMEFIRST is trading at ₹984, below both its 50 DMA (₹1,105) and 200 DMA (₹1,153), reflecting short-term weakness. RSI at 33.2 indicates oversold conditions, while MACD at -43.8 confirms bearish momentum. Bollinger Bands show price near the lower band, suggesting selling pressure. Volume is significantly above average, showing strong participation in the downtrend.
📈 Momentum Signals: Short-term momentum is weak, with RSI oversold and MACD negative. A rebound may occur if support holds, but trend remains bearish. Consolidation is possible before reversal attempts.
💹 Entry & Exit Zones:
- Optimal Entry: ₹970–₹990 (near support, oversold RSI)
- Stop-Loss: ₹940 (below strong support)
- Exit Zone: ₹1,100–₹1,120 (near 50 DMA resistance)
- Major Resistance: ₹1,150–₹1,160 (200 DMA)
📉 Trend Status: The stock is consolidating with bearish bias, supported by oversold RSI but capped by moving averages.
Positive
- Strong ROE (16.5%) highlights profitability in housing finance sector.
- PEG ratio of 0.76 indicates attractive valuation relative to growth.
- Quarterly PAT improved to ₹140 Cr. from ₹132 Cr., showing earnings growth.
- EPS of ₹49.4 reflects consistent profitability.
Limitation
- P/E of 20.7 is higher than industry average (14.1), suggesting premium valuation.
- Debt-to-equity ratio of 2.40 indicates high leverage.
- Price trading below both 50 DMA and 200 DMA shows weak technical strength.
Company Negative News
- DII holdings decreased (-1.23%), showing reduced domestic institutional support.
- Stock corrected sharply from its 52-week high of ₹1,519, reflecting selling pressure.
Company Positive News
- FII holdings increased (+0.83%), showing foreign investor confidence.
- Quarterly profit variation of 44.0% highlights strong operational improvement.
Industry
- Housing finance industry benefits from rising demand for affordable housing and government initiatives.
- Industry PE at 14.1 highlights relatively cheaper peers compared to HOMEFIRST’s P/E of 20.7.
Conclusion
⚖️ HOMEFIRST is technically weak, consolidating with bearish bias and trading below key moving averages. Traders may consider entry near ₹970–₹990 with strict stop-loss at ₹940, targeting ₹1,100–₹1,120 in the short term. Long-term investors may find value given strong fundamentals and attractive PEG ratio, but should be cautious of high leverage and premium valuation.
Would you like me to extend this into a peer benchmarking overlay (e.g., LIC Housing Finance, Can Fin Homes, PNB Housing) so you can evaluate sector rotation opportunities alongside HOMEFIRST?