HONASA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | HONASA | Market Cap | 9,145 Cr. | Current Price | 281 ₹ | High / Low | 334 ₹ |
| Stock P/E | 59.2 | Book Value | 38.8 ₹ | Dividend Yield | 0.00 % | ROCE | 7.44 % |
| ROE | 5.51 % | Face Value | 10.0 ₹ | DMA 50 | 287 ₹ | DMA 200 | 287 ₹ |
| Chg in FII Hold | -0.88 % | Chg in DII Hold | -0.51 % | PAT Qtr | 51.7 Cr. | PAT Prev Qtr | 38.4 Cr. |
| RSI | 46.5 | MACD | -4.90 | Volume | 34,19,453 | Avg Vol 1Wk | 10,63,743 |
| Low price | 190 ₹ | High price | 334 ₹ | PEG Ratio | 1.24 | Debt to equity | 0.09 |
| 52w Index | 63.0 % | Qtr Profit Var | 109 % | EPS | 4.64 ₹ | Industry PE | 43.1 |
📊 Chart & Trend Analysis: HONASA is trading at ₹281, almost aligned with both its 50 DMA (₹287) and 200 DMA (₹287), reflecting consolidation. RSI at 46.5 indicates neutral momentum, while MACD at -4.90 confirms mild bearish crossover. Bollinger Bands show price near the mid-range, suggesting sideways movement. Volume is significantly above average, showing strong participation in recent sessions.
📈 Momentum Signals: Short-term momentum is weak, with MACD negative and RSI neutral. Consolidation is likely before a breakout attempt. Price action suggests sideways movement with mild bearish bias.
💹 Entry & Exit Zones:
- Optimal Entry: ₹275–₹285 (near support zone)
- Stop-Loss: ₹265 (below strong support)
- Exit Zone: ₹300–₹310 (near resistance)
- Major Resistance: ₹334 (recent high)
📉 Trend Status: The stock is consolidating with bearish bias, capped by moving averages and weak momentum indicators.
Positive
- PEG ratio of 1.24 indicates fair valuation relative to growth.
- Debt-to-equity ratio of 0.09 reflects low leverage.
- Quarterly PAT improved to ₹51.7 Cr. from ₹38.4 Cr., showing earnings growth.
- EPS of ₹4.64 reflects profitability despite sector challenges.
Limitation
- High P/E of 59.2 compared to industry average (43.1), indicating expensive valuation.
- Weak ROCE (7.44%) and ROE (5.51%) show limited efficiency.
- Dividend yield of 0.00% offers no income to investors.
Company Negative News
- Decline in FII holding (-0.88%) shows reduced foreign investor confidence.
- DII holdings decreased (-0.51%), showing reduced domestic institutional support.
Company Positive News
- Quarterly profit variation of 109% highlights strong operational improvement.
- 52-week performance (+63.0%) indicates resilience despite recent weakness.
Industry
- Consumer goods and personal care industry benefits from rising demand and brand-driven growth.
- Industry PE at 43.1 highlights relatively cheaper peers compared to HONASA’s premium valuation.
Conclusion
⚖️ HONASA is technically consolidating with bearish bias, trading near both 50 DMA and 200 DMA. Traders may consider entry near ₹275–₹285 with strict stop-loss at ₹265, targeting ₹300–₹310 in the short term. Long-term investors should be cautious due to high valuations and modest efficiency metrics, waiting for sustained earnings growth before accumulation.
Would you like me to extend this into a peer benchmarking overlay (e.g., Dabur, Marico, Emami) so you can evaluate sector rotation opportunities alongside HONASA?