INDGN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | INDGN | Market Cap | 10,874 Cr. | Current Price | 453 ₹ | High / Low | 633 ₹ |
| Stock P/E | 56.0 | Book Value | 81.6 ₹ | Dividend Yield | 0.44 % | ROCE | 16.6 % |
| ROE | 12.6 % | Face Value | 2.00 ₹ | DMA 50 | 479 ₹ | DMA 200 | 525 ₹ |
| Chg in FII Hold | 0.18 % | Chg in DII Hold | 1.11 % | PAT Qtr | 34.8 Cr. | PAT Prev Qtr | 59.9 Cr. |
| RSI | 43.5 | MACD | -13.2 | Volume | 4,58,723 | Avg Vol 1Wk | 10,03,472 |
| Low price | 423 ₹ | High price | 633 ₹ | PEG Ratio | 5.38 | Debt to equity | 0.03 |
| 52w Index | 14.2 % | Qtr Profit Var | -30.3 % | EPS | 8.08 ₹ | Industry PE | 52.3 |
📉 Chart & Trend: INDGN is trading at ₹453, below both its 50 DMA (₹479) and 200 DMA (₹525), confirming a bearish bias.
📊 RSI: At 43.5, RSI is neutral-to-weak, showing mild selling pressure.
📉 MACD: Negative at -13.2, reinforcing bearish momentum and lack of immediate recovery signals.
📈 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and risk of further downside.
📊 Volume Trends: Current volume (4.58 lakh) is significantly lower than the 1-week average (10 lakh), showing reduced participation and weak conviction.
📌 Momentum Signals: Short-term momentum is negative. Sustaining above ₹440–₹450 support is crucial; a breakout above ₹470 could trigger recovery.
🎯 Entry Zone: ₹440–₹455 (support zone, cautious entry).
🎯 Exit Zone: ₹480–₹500 (resistance zone, profit-taking advisable).
🔎 Trend Status: The stock is trending downward with weak momentum and bearish undertones.
Positive
- ROCE at 16.6% and ROE at 12.6% show decent efficiency.
- Debt-to-equity ratio at 0.03 indicates a nearly debt-free balance sheet.
- DII holdings increased (+1.11%), showing domestic institutional support.
- Dividend yield of 0.44% provides modest income support.
Limitation
- P/E of 56.0 is expensive compared to industry PE of 52.3.
- PEG ratio at 5.38 suggests stretched growth valuation.
- Quarterly profit dropped from ₹59.9 Cr to ₹34.8 Cr (-30.3%).
- Price trading below both DMA 50 and DMA 200.
Company Negative News
- Sharp decline in quarterly profits (-30.3%).
- Weak technical momentum with bearish MACD.
- Valuations appear stretched relative to growth.
Company Positive News
- DII inflows (+1.11%) show confidence in the company.
- Debt-free balance sheet strengthens financial stability.
- Dividend yield, though modest, adds investor appeal.
Industry
- Industry PE at 52.3 is slightly lower than INDGN’s P/E of 56.0, showing premium valuations.
- Specialty chemicals and industrial manufacturing sector is cyclical, with demand tied to global commodity cycles and infrastructure growth.
Conclusion
⚠️ INDGN is in a bearish trend with weak technical indicators. While debt-free status and decent ROCE/ROE are positives, declining profits and stretched valuations limit attractiveness. Short-term traders may consider entry near ₹440–₹455 with strict stop-loss, targeting ₹480–₹500. Long-term investors should wait for earnings recovery and trend reversal before accumulating.
Selva, since you’re benchmarking industrial and specialty chemical plays, I can prepare a peer overlay with Aarti Industries, Deepak Nitrite, and SRF to compare INDGN’s momentum against sector rotation signals. Would you like me to add that basket scan for clearer compounding opportunities?