HONASA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.5

📉 HONASA is currently consolidating with neutral momentum and weak trend confirmation, though volume and earnings growth show early signs of recovery.

📊 Technical Analysis

• Trend Status: Consolidating — price is oscillating between 50-DMA and 200-DMA with no clear breakout.
• Moving Averages: Price ₹279 is slightly below both 50-DMA (₹286) and 200-DMA (₹292), indicating mild bearish pressure.
• RSI (50.8): Neutral zone, suggesting indecision and lack of strong directional momentum.
• MACD (-3.68): Bearish crossover, indicating short-term weakness.
• Bollinger Bands: Price near mid-band, consistent with consolidation and low volatility.
• Volume: Current volume (10.99L) is significantly higher than weekly average (5.64L), suggesting renewed interest.

🎯 Entry & Exit Zones

• Support Levels: ₹270, ₹260
• Resistance Levels: ₹286 (50-DMA), ₹292 (200-DMA), ₹310
• Optimal Entry: ₹270–₹275 (on pullback near support)
• Exit Target: ₹292–₹310 (resistance zone)

✅ Positive

• Quarterly PAT improved from ₹24.6 Cr to ₹39.9 Cr, showing earnings growth.
• Volume surge indicates increasing investor interest.
• Low debt-to-equity ratio (0.09) reflects financial prudence.

⚠️ Limitation

• High P/E (128) and PEG (2.67) suggest overvaluation relative to growth.
• MACD and moving averages indicate short-term weakness.
• Dividend yield is 0%, offering no passive income.

📉 Company Negative News

• FII holdings declined by 0.59%, reflecting reduced foreign investor confidence.
• Stock is down 30% from its 52-week high of ₹403, indicating underperformance.

📈 Company Positive News

• DII holdings increased by 0.25%, showing cautious domestic accumulation.
• Consistent improvement in profitability over recent quarters.

🏭 Industry

• Consumer goods sector remains competitive with high-growth potential in digital-first brands.
• Industry P/E (51.8) is significantly lower than HONASA’s, suggesting a premium valuation.

🧾 Conclusion

• HONASA is consolidating with neutral momentum and early signs of accumulation.
• Entry near ₹270–₹275 could offer a low-risk setup with targets around ₹292–₹310.
• Investors should monitor valuation metrics and volume trends for confirmation of trend reversal.