IKS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | IKS | Market Cap | 27,045 Cr. | Current Price | 1,571 ₹ | High / Low | 1,929 ₹ |
| Stock P/E | 62.3 | Book Value | 86.2 ₹ | Dividend Yield | 0.00 % | ROCE | 35.0 % |
| ROE | 32.3 % | Face Value | 1.00 ₹ | DMA 50 | 1,644 ₹ | DMA 200 | 1,639 ₹ |
| Chg in FII Hold | 0.54 % | Chg in DII Hold | 1.17 % | PAT Qtr | 138 Cr. | PAT Prev Qtr | 113 Cr. |
| RSI | 37.4 | MACD | -25.4 | Volume | 73,023 | Avg Vol 1Wk | 3,58,848 |
| Low price | 1,226 ₹ | High price | 1,929 ₹ | PEG Ratio | 3.59 | Debt to equity | 0.07 |
| 52w Index | 49.0 % | Qtr Profit Var | 50.2 % | EPS | 25.3 ₹ | Industry PE | 25.7 |
📉 Chart & Trend Analysis: IKS is trading at ₹1,571, below both its 50 DMA (₹1,644) and 200 DMA (₹1,639), signaling weakness. RSI at 37.4 suggests the stock is approaching oversold territory. MACD at -25.4 confirms bearish momentum. Bollinger Bands show price leaning toward the lower band, indicating sustained selling pressure. Current volume (73K) is significantly below the 1-week average (3.6L), reflecting weak participation.
🔑 Momentum Signals: Short-term momentum is bearish with immediate support at ₹1,540 and major support at ₹1,500. Resistance lies at ₹1,640–₹1,660 (DMA zone). Optimal entry zone: ₹1,540–₹1,560 for risk-tolerant traders. Exit zone: ₹1,640–₹1,660 if recovery occurs. Trend status: Reversing downward.
Positive ✅
- Strong ROCE (35.0%) and ROE (32.3%) highlight efficient capital use.
- Low debt-to-equity (0.07) ensures financial stability.
- Quarterly PAT growth (₹138 Cr vs ₹113 Cr) shows earnings momentum.
- EPS of ₹25.3 reflects consistent profitability base.
Limitation ⚠️
- Stock trading below both 50 DMA and 200 DMA, confirming weak technical strength.
- High P/E (62.3) compared to industry PE (25.7) indicates overvaluation.
- PEG ratio of 3.59 suggests stretched valuation relative to growth.
- Volume trend significantly weaker than average, showing lack of strong buying support.
Company Negative News 📉
- Stock has fallen from 52-week high of ₹1,929 to ₹1,571, eroding sentiment.
- Weak technical indicators (RSI, MACD) point to continued bearishness.
Company Positive News 📊
- FII holding increased (+0.54%), showing foreign investor confidence.
- DII holding also increased (+1.17%), reflecting domestic institutional support.
- Quarterly profit variation of 50.2% indicates strong operational performance.
Industry 🌐
- Industry PE at 25.7 is much lower than IKS’s PE of 62.3, suggesting sector peers may be more attractively valued.
- Sector outlook remains positive with growth opportunities, but valuations are critical.
Conclusion 📝
IKS is currently in a bearish reversal phase, trading below key moving averages with weak momentum indicators. While fundamentals show strong ROE/ROCE and profit growth, high valuation and weak technicals remain concerns. Risk-tolerant traders may consider entries near ₹1,540–₹1,560 with exits around ₹1,640–₹1,660, while long-term investors should wait for confirmation of trend reversal above the 200 DMA.
Would you like me to also prepare a peer benchmarking overlay comparing IKS with other mid-cap growth stocks in its sector to highlight relative valuation and momentum strength?