HONASA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | HONASA | Market Cap | 8,979 Cr. | Current Price | 276 ₹ | High / Low | 334 ₹ |
| Stock P/E | 72.2 | Book Value | 38.8 ₹ | Dividend Yield | 0.00 % | ROCE | 7.44 % |
| ROE | 5.51 % | Face Value | 10.0 ₹ | DMA 50 | 279 ₹ | DMA 200 | 286 ₹ |
| Chg in FII Hold | -0.88 % | Chg in DII Hold | -0.51 % | PAT Qtr | 38.4 Cr. | PAT Prev Qtr | 39.9 Cr. |
| RSI | 47.6 | MACD | -2.27 | Volume | 1,44,195 | Avg Vol 1Wk | 2,82,064 |
| Low price | 190 ₹ | High price | 334 ₹ | PEG Ratio | 1.51 | Debt to equity | 0.09 |
| 52w Index | 59.6 % | Qtr Profit Var | 357 % | EPS | 3.83 ₹ | Industry PE | 46.8 |
📊 Chart & Trend Analysis: HONASA is trading at ₹276, slightly below its 50 DMA (₹279) and 200 DMA (₹286), indicating short-term weakness. RSI at 47.6 suggests neutral momentum, neither overbought nor oversold. MACD at -2.27 reflects mild bearish sentiment. Current volume (1.44L) is significantly lower than the weekly average (2.82L), showing weak participation. Bollinger Bands indicate price near mid-range, reinforcing consolidation.
📈 Momentum Signals: Short-term momentum is weak, with MACD negative and RSI neutral. Low volume participation limits breakout potential, suggesting sideways consolidation.
🎯 Entry Zone: ₹270 – ₹275 (near immediate support)
🚪 Exit Zone: ₹290 – ₹300 (near resistance at 200 DMA)
🔎 Trend Status: Consolidating with bearish bias. Sustained trade above ₹290 could trigger recovery towards ₹310+, while breakdown below ₹270 may signal reversal towards ₹250.
Positive
- PEG ratio of 1.51 indicates reasonable valuation relative to growth.
- Debt-to-equity ratio of 0.09 reflects low leverage risk.
- Quarterly PAT variation of 357% shows strong year-on-year earnings growth.
- EPS of ₹3.83 reflects profitability despite high valuation.
Limitation
- Stock trading below both 50 DMA and 200 DMA signals weakness.
- High P/E ratio (72.2) compared to industry average (46.8) suggests overvaluation.
- ROCE (7.44%) and ROE (5.51%) are modest, indicating efficiency concerns.
- Dividend yield of 0.00% offers no income appeal.
- Weak trading volume reduces conviction in recovery moves.
Company Negative News
- Decline in FII holding (-0.88%) signals reduced foreign investor confidence.
- Decline in DII holding (-0.51%) shows reduced domestic institutional support.
- Sequential PAT decline from ₹39.9 Cr. to ₹38.4 Cr. highlights earnings pressure.
Company Positive News
- Quarterly profit variation of 357% shows strong year-on-year growth.
- Low debt-to-equity ratio supports financial stability.
Industry
- Consumer goods and personal care sector remains resilient with steady demand.
- Industry P/E at 46.8 highlights moderate sector valuation compared to HONASA’s premium.
Conclusion
⚖️ HONASA is consolidating with a bearish bias. Entry near ₹270–₹275 offers cautious accumulation, while exits near ₹290–₹300 provide short-term profit booking. Strong year-on-year profit growth supports long-term holding, but high valuation, weak efficiency metrics, and declining institutional confidence warrant cautious positioning.
Would you like me to extend this into a peer benchmarking overlay (Nykaa, Dabur, Marico) so you can compare HONASA’s relative strength within the consumer goods & personal care basket?