INDIACEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | INDIACEM | Market Cap | 12,445 Cr. | Current Price | 402 ₹ | High / Low | 490 ₹ |
| Stock P/E | 134 | Book Value | 324 ₹ | Dividend Yield | 0.00 % | ROCE | 1.76 % |
| ROE | 0.94 % | Face Value | 10.0 ₹ | DMA 50 | 400 ₹ | DMA 200 | 394 ₹ |
| Chg in FII Hold | 0.08 % | Chg in DII Hold | 0.10 % | PAT Qtr | 71.8 Cr. | PAT Prev Qtr | 10.9 Cr. |
| RSI | 50.2 | MACD | 1.47 | Volume | 97,785 | Avg Vol 1Wk | 1,57,321 |
| Low price | 297 ₹ | High price | 490 ₹ | PEG Ratio | 4.34 | Debt to equity | 0.13 |
| 52w Index | 54.2 % | Qtr Profit Var | 218 % | EPS | 2.11 ₹ | Industry PE | 29.0 |
📉 INDIACEM is trading slightly above its 50 DMA (₹400) and 200 DMA (₹394), reflecting near-term strength but medium-term consolidation. RSI at 50.2 indicates neutral momentum, while MACD is mildly positive (1.47), suggesting weak bullish crossover. Bollinger Bands show price mid-range, leaving room for upside. Current volume (97k) is below average (157k), showing limited participation.
🔑 Short-term momentum signals: Neutral-to-positive, with potential upside if price sustains above ₹405–₹410 zone.
🎯 Entry Zone: ₹390–₹400 (support region)
🚪 Exit Zone: ₹440–₹460 (resistance region)
📊 Trend Status: Consolidating with mild bullish bias
Positive
- Trading above both 50 DMA and 200 DMA
- MACD positive, confirming bullish crossover
- Quarterly PAT surged from ₹10.9 Cr. to ₹71.8 Cr. (+218%)
- FII (+0.08%) and DII (+0.10%) holdings increased
- Book value at ₹324 supports valuation floor
- Debt-to-equity ratio at 0.13 indicates low leverage
- 52-week return of 54.2% shows strong investor sentiment
Limitation
- Extremely high P/E (134 vs industry 29.0)
- Weak ROE (0.94%) and ROCE (1.76%)
- EPS at ₹2.11 remains modest
- PEG ratio (4.34) indicates stretched valuation relative to growth
- Volume below average, limiting breakout strength
Company Negative News
- Valuation concerns with P/E significantly above industry
- Weak profitability metrics despite PAT growth
Company Positive News
- Quarterly PAT surged significantly (+218%)
- Institutional holdings increased (FII +0.08%, DII +0.10%)
- Price supported by DMA levels
Industry
- Industry PE at 29.0 highlights sector trading at lower multiples
- Cement sector supported by infrastructure demand and housing growth
Conclusion
⚖️ INDIACEM shows neutral-to-positive technical momentum with RSI near 50 and positive MACD. Entry is favorable near ₹390–₹400 with profit booking around ₹440–₹460. Trend remains consolidative with mild bullish bias unless price sustains above ₹410 with stronger volume. Fundamentals remain weak with stretched valuations, making it more suitable for tactical trades than long-term holding.
Would you like me to extend this into a cement sector overlay comparing INDIACEM’s technicals and valuations against peers like Ultratech Cement, Shree Cement, and Ramco Cements to highlight sector-relative positioning?