INDIACEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | INDIACEM | Market Cap | 12,269 Cr. | Current Price | 396 ₹ | High / Low | 490 ₹ |
| Stock P/E | 133 | Book Value | 324 ₹ | Dividend Yield | 0.00 % | ROCE | 1.76 % |
| ROE | 0.94 % | Face Value | 10.0 ₹ | DMA 50 | 399 ₹ | DMA 200 | 393 ₹ |
| Chg in FII Hold | 0.08 % | Chg in DII Hold | 0.10 % | PAT Qtr | 71.8 Cr. | PAT Prev Qtr | 10.9 Cr. |
| RSI | 49.1 | MACD | 8.41 | Volume | 5,33,683 | Avg Vol 1Wk | 86,71,337 |
| Low price | 297 ₹ | High price | 490 ₹ | PEG Ratio | 4.27 | Debt to equity | 0.13 |
| 52w Index | 51.3 % | Qtr Profit Var | 218 % | EPS | 2.11 ₹ | Industry PE | 30.8 |
📉 India Cements (INDIACEM) is trading near its 50 DMA (₹399) and 200 DMA (₹393), showing indecision around key averages. RSI at 49.1 indicates neutral momentum, while MACD at 8.41 suggests mild bullish crossover. Bollinger Bands show price near mid-range, reflecting consolidation. Current volume (5.3 lakh) is far below average (86.7 lakh), highlighting weak participation.
🔑 Short-term momentum signals: Mild bullish bias, but sustainability depends on reclaiming ₹405–₹410 zone.
🎯 Entry Zone: ₹385–₹395 (support region)
🚪 Exit Zone: ₹420–₹430 (resistance region)
📊 Trend Status: Consolidating with weak bullish tilt
Positive
- Trading close to both 50 DMA and 200 DMA, offering technical support
- Quarterly PAT surged to ₹71.8 Cr. vs ₹10.9 Cr.
- FII (+0.08%) and DII (+0.10%) holdings increased
- 52-week return of 51.3% reflects investor interest
- Low debt-to-equity ratio (0.13)
Limitation
- Extremely high P/E (133 vs industry 30.8)
- Weak ROCE (1.76%) and ROE (0.94%)
- EPS at ₹2.11 remains low
- PEG ratio at 4.27 indicates poor growth valuation
- Volume significantly below average, showing reduced market activity
Company Negative News
- Valuation premium compared to peers
- Weak profitability metrics despite PAT recovery
Company Positive News
- Quarterly PAT improved sharply (+218% variance)
- Institutional holdings increased (FII +0.08%, DII +0.10%)
- Technical support from DMA levels
Industry
- Industry PE at 30.8 highlights sector trading at lower multiples
- Cement sector supported by infrastructure demand but facing margin pressures
Conclusion
⚖️ India Cements shows speculative bullish momentum with MACD crossover and PAT recovery, but fundamentals remain weak with high valuation and low profitability. Entry near ₹385–₹395 offers tactical opportunity, with profit booking around ₹420–₹430. Trend remains consolidative with mild bullish tilt, requiring stronger volume and breakout above ₹410 for sustained upside.
Would you like me to extend this into a cement sector overlay (benchmarking India Cements against peers like ACC, Ambuja, and Shree Cement) to highlight relative strength and valuation positioning?