IFCI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | IFCI | Market Cap | 15,471 Cr. | Current Price | 57.4 ₹ | High / Low | 74.5 ₹ |
| Stock P/E | 51.1 | Book Value | 6.53 ₹ | Dividend Yield | 0.00 % | ROCE | 14.9 % |
| ROE | 2.97 % | Face Value | 10.0 ₹ | DMA 50 | 54.3 ₹ | DMA 200 | 54.4 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.00 % | PAT Qtr | 6.85 Cr. | PAT Prev Qtr | 16.1 Cr. |
| RSI | 55.2 | MACD | 1.31 | Volume | 11,80,79,812 | Avg Vol 1Wk | 3,74,48,970 |
| Low price | 35.7 ₹ | High price | 74.5 ₹ | PEG Ratio | 1.93 | Debt to equity | 2.03 |
| 52w Index | 56.0 % | Qtr Profit Var | 112 % | EPS | 1.12 ₹ | Industry PE | 19.1 |
📊 Chart Patterns & Trend: IFCI is consolidating near the 57 ₹ zone. Price is slightly above both the 50 DMA (54.3 ₹) and 200 DMA (54.4 ₹), showing medium-term support but limited breakout strength.
📈 Moving Averages: Both 50 DMA and 200 DMA are flat, indicating sideways consolidation. Sustained move above 60 ₹ could trigger bullish momentum.
📉 RSI: At 55.2, RSI is neutral, suggesting balanced buying and selling pressure.
📈 MACD: Positive (1.31), showing mild bullish crossover and short-term upward bias.
📊 Bollinger Bands: Price is near the mid-band, reflecting consolidation. Breakout above 60–62 ₹ could open upside potential.
📊 Volume Trends: Current volume (11.8 Cr.) is significantly higher than average weekly volume (3.74 Cr.), indicating strong participation and potential accumulation.
🎯 Entry Zone: 54–56 ₹ (near DMA support).
🎯 Exit Zone: 62–65 ₹ (resistance zone).
🔑 Stop Loss: 52 ₹ (below DMA support).
Positive
- ROCE at 14.9% indicates efficient capital usage.
- Quarterly profit growth of 112% shows strong earnings momentum.
- Price trading above both 50 and 200 DMA supports medium-term strength.
- High trading volume suggests investor interest and accumulation.
Limitation
- ROE at 2.97% is weak compared to industry peers.
- High P/E ratio (51.1) vs. industry PE (19.1) suggests overvaluation.
- PEG ratio of 1.93 indicates limited growth-adjusted value.
- No dividend yield, reducing income attractiveness.
Company Negative News
- Quarterly PAT dropped from 16.1 Cr. to 6.85 Cr., showing earnings volatility.
- FII holdings decreased (-0.02%), reflecting reduced foreign investor confidence.
Company Positive News
- Quarterly profit variation shows strong rebound momentum despite volatility.
- EPS at 1.12 ₹ supports valuation stability.
- Strong 52-week performance (56% index gain).
Industry
- Industry PE at 19.1 vs. stock PE at 51.1 highlights premium valuation.
- Financial services sector remains supported by credit demand and government initiatives.
Conclusion
⚖️ IFCI is in a consolidation phase with mild bullish signals (MACD positive, RSI neutral). Medium-term outlook remains supported by strong ROCE and volume participation, but high valuation and weak ROE limit upside potential. Entry near 54–56 ₹ offers margin of safety, while breakout above 62 ₹ could trigger momentum toward 65 ₹. Risk management is essential due to earnings volatility and stretched valuation.
Would you like me to extend this into a basket overlay comparison with other mid-cap financial institutions (like REC, PFC, and IREDA) to highlight relative strength and sector rotation opportunities?