IGL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | IGL | Market Cap | 22,032 Cr. | Current Price | 157 ₹ | High / Low | 229 ₹ |
| Stock P/E | 15.3 | Book Value | 70.0 ₹ | Dividend Yield | 2.70 % | ROCE | 20.8 % |
| ROE | 15.7 % | Face Value | 2.00 ₹ | DMA 50 | 171 ₹ | DMA 200 | 192 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | 0.09 % | PAT Qtr | 359 Cr. | PAT Prev Qtr | 373 Cr. |
| RSI | 38.6 | MACD | -4.67 | Volume | 17,37,685 | Avg Vol 1Wk | 30,22,780 |
| Low price | 152 ₹ | High price | 229 ₹ | PEG Ratio | 4.55 | Debt to equity | 0.01 |
| 52w Index | 6.81 % | Qtr Profit Var | 25.4 % | EPS | 10.3 ₹ | Industry PE | 14.4 |
📉 Chart & Trend: IGL is trading at ₹157, below both its 50 DMA (₹171) and 200 DMA (₹192), confirming a bearish bias.
📊 RSI: At 38.6, RSI is approaching oversold territory, showing weak momentum but potential for a short-term rebound.
📉 MACD: Negative at -4.67, reinforcing bearish momentum and lack of immediate recovery signals.
📈 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible short-term bounce if support holds.
📊 Volume Trends: Current volume (17.3 lakh) is significantly below the 1-week average (30.2 lakh), showing reduced participation and weak conviction.
📌 Momentum Signals: Short-term momentum is weak. Sustaining above ₹152–₹157 support is crucial; a breakout above ₹165–₹170 could trigger recovery.
🎯 Entry Zone: ₹152–₹157 (support zone, cautious entry).
🎯 Exit Zone: ₹170–₹180 (resistance zone, profit-taking advisable).
🔎 Trend Status: The stock is trending downward with weak momentum and oversold signals.
Positive
- Strong ROCE (20.8%) and ROE (15.7%) highlight operational efficiency.
- EPS at ₹10.3 supports valuations.
- Dividend yield of 2.70% provides income support.
- Debt-to-equity ratio at 0.01 indicates a nearly debt-free balance sheet.
- DII holdings increased slightly (+0.09%).
Limitation
- P/E of 15.3 is slightly above industry PE of 14.4.
- PEG ratio at 4.55 suggests stretched growth valuation.
- Quarterly PAT declined from ₹373 Cr to ₹359 Cr (-25.4%).
- Price trading below both DMA 50 and DMA 200.
Company Negative News
- Quarterly profit decline (-25.4%).
- FII holdings decreased (-0.21%).
- Weak technical momentum with bearish MACD.
Company Positive News
- Strong efficiency ratios (ROCE and ROE).
- Dividend yield of 2.70% adds investor appeal.
- Debt-free balance sheet strengthens financial stability.
Industry
- Industry PE at 14.4 is slightly lower than IGL’s P/E of 15.3, showing premium valuations.
- City gas distribution sector is cyclical, driven by energy demand, government policies, and crude price trends.
Conclusion
⚠️ IGL is in a bearish trend with weak technical indicators. While fundamentals are supported by strong ROCE, ROE, and dividend yield, declining profits and stretched PEG ratio limit attractiveness. Short-term traders may consider entry near ₹152–₹157 with strict stop-loss, targeting ₹170–₹180. Long-term investors can accumulate gradually, given sectoral growth in clean energy distribution.
Selva, since you’re benchmarking energy distribution plays, I can prepare a peer overlay with MGL, Gujarat Gas, and Adani Total Gas to compare IGL’s momentum against sector rotation signals. Would you like me to add that basket scan for clearer compounding opportunities?