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IFCI - Technical Analysis with Chart Patterns & Indicators

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Rating: 2.6

Last Updated Time : 04 May 26, 11:57 am

Technical Rating: 2.6

Stock Code IFCI Market Cap 15,813 Cr. Current Price 58.7 ₹ High / Low 74.5 ₹
Stock P/E 306 Book Value 6.63 ₹ Dividend Yield 0.00 % ROCE 8.48 %
ROE 2.94 % Face Value 10.0 ₹ DMA 50 57.1 ₹ DMA 200 55.7 ₹
Chg in FII Hold 0.07 % Chg in DII Hold 0.02 % PAT Qtr 21.4 Cr. PAT Prev Qtr 6.85 Cr.
RSI 52.5 MACD 1.25 Volume 1,18,93,472 Avg Vol 1Wk 1,69,54,731
Low price 38.1 ₹ High price 74.5 ₹ PEG Ratio 10.3 Debt to equity 2.01
52w Index 56.5 % Qtr Profit Var -92.2 % EPS 0.19 ₹ Industry PE 19.8

📉 IFCI is trading slightly above its 50 DMA (₹57.1) and 200 DMA (₹55.7), showing short-term support but weak long-term structure. RSI at 52.5 indicates neutral momentum, while MACD is mildly positive (1.25), suggesting limited bullish crossover. Bollinger Bands show price near mid-range, not strongly overbought or oversold. Current volume (1.18 Cr.) is below average (1.69 Cr.), reflecting reduced participation.

🔑 Short-term momentum signals: Mild bullish bias, but sustainability is questionable given weak fundamentals.

🎯 Entry Zone: ₹55–₹58 (support region)

🚪 Exit Zone: ₹64–₹68 (resistance region)

📊 Trend Status: Consolidating with weak bullish undertone

Positive

  • Trading above both 50 DMA and 200 DMA
  • Quarterly PAT improved to ₹21.4 Cr. from ₹6.85 Cr.
  • FII (+0.07%) and DII (+0.02%) holdings increased
  • Strong 52-week return (+56.5%)

Limitation

  • Extremely high P/E (306 vs industry 19.8)
  • Weak ROE (2.94%) and ROCE (8.48%)
  • Low EPS (₹0.19)
  • High PEG ratio (10.3) indicates poor growth valuation
  • No dividend yield
  • Debt-to-equity ratio at 2.01 raises leverage concerns

Company Negative News

  • Quarterly profit variation (-92.2%) highlights volatility
  • Weak earnings undermine investor confidence
  • Valuation stretched compared to peers

Company Positive News

  • Quarterly PAT recovery from ₹6.85 Cr. to ₹21.4 Cr.
  • Marginal increase in institutional holdings
  • Technical support from DMA levels

Industry

  • Industry PE at 19.8 highlights sector trades at lower multiples
  • Financial services sector outlook remains cautious with high leverage and valuation pressures

Conclusion

⚖️ IFCI shows short-term bullish signals with RSI above 50 and positive MACD. Entry is favorable near ₹55–₹58 with stop-loss at ₹53. Exit or profit-taking zone lies around ₹64–₹68. Long-term investors should be cautious due to weak fundamentals, extremely high valuation, and profit volatility, while short-term traders may exploit momentum above DMA levels.

Would you like me to prepare a multi-stock overlay comparing IFCI’s valuation and momentum against peers like PFC, REC, and IDFC Ltd. for benchmarking consistency across your swing-trade reports?

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