IIFL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.6
| Stock Code | IIFL | Market Cap | 20,794 Cr. | Current Price | 489 ₹ | High / Low | 675 ₹ |
| Stock P/E | 30.4 | Book Value | 162 ₹ | Dividend Yield | 0.82 % | ROCE | 6.57 % |
| ROE | 4.20 % | Face Value | 2.00 ₹ | DMA 50 | 517 ₹ | DMA 200 | 506 ₹ |
| Chg in FII Hold | 1.00 % | Chg in DII Hold | 0.03 % | PAT Qtr | 301 Cr. | PAT Prev Qtr | 211 Cr. |
| RSI | 45.5 | MACD | -13.6 | Volume | 9,91,520 | Avg Vol 1Wk | 10,41,955 |
| Low price | 306 ₹ | High price | 675 ₹ | PEG Ratio | -1.01 | Debt to equity | 4.55 |
| 52w Index | 49.7 % | Qtr Profit Var | 1,785 % | EPS | 16.1 ₹ | Industry PE | 17.2 |
📉 Chart & Trend: IIFL is trading at ₹489, below both its 50 DMA (₹517) and 200 DMA (₹506), indicating a bearish bias.
📊 RSI: At 45.5, RSI is neutral, suggesting neither strong buying nor selling pressure.
📉 MACD: Negative at -13.6, confirming bearish momentum and lack of immediate recovery signals.
📈 Bollinger Bands: Price is near the mid-band, showing consolidation with mild downside risk.
📊 Volume Trends: Current volume (9.9 lakh) is slightly below the 1-week average (10.4 lakh), reflecting reduced participation.
📌 Momentum Signals: Short-term momentum is weak. Sustaining above ₹485–₹490 support is crucial for stability.
🎯 Entry Zone: ₹485–₹490 (near support, cautious entry).
🎯 Exit Zone: ₹515–₹530 (resistance near DMA levels).
🔎 Trend Status: The stock is consolidating with weak momentum and bearish undertones.
Positive
- Quarterly profit surged to ₹301 Cr from ₹211 Cr (+1,785%).
- EPS at ₹16.1 shows earnings strength despite valuation concerns.
- FII holdings increased (+1%), showing institutional confidence.
- 52-week index performance at 49.7% indicates relative strength.
Limitation
- High debt-to-equity ratio (4.55) raises financial risk.
- ROE at 4.20% and ROCE at 6.57% are weak compared to peers.
- P/E of 30.4 is expensive versus industry PE of 17.2.
- PEG ratio is negative (-1.01), limiting growth valuation clarity.
Company Negative News
- Weak return ratios (ROE, ROCE).
- High leverage with debt-to-equity at 4.55.
- Stock trading below DMA levels with bearish MACD.
Company Positive News
- Strong quarterly profit growth (+1,785%).
- FII inflows show confidence in future performance.
- Dividend payout, though modest (0.82% yield).
Industry
- Industry PE at 17.2 is much lower than IIFL’s P/E of 30.4, showing premium valuations.
- NBFC sector is facing mixed signals with credit growth but rising funding costs.
Conclusion
⚠️ IIFL is in a consolidation phase with weak technical indicators. Despite strong profit growth and FII inflows, high debt and poor return ratios limit attractiveness. Short-term traders may consider entry near ₹485–₹490 with strict stop-loss, targeting ₹515–₹530. Long-term investors should wait for sustained improvement in ROE/ROCE before accumulating.
Selva, since you’re benchmarking NBFCs, I can prepare a peer overlay with Bajaj Finance, Muthoot, and Manappuram to compare IIFL’s momentum against sector rotation signals. Would you like me to add that basket scan for clearer compounding opportunities?