INDIACEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.6
| Stock Code | INDIACEM | Market Cap | 11,449 Cr. | Current Price | 369 ₹ | High / Low | 490 ₹ |
| Book Value | 310 ₹ | Dividend Yield | 0.00 % | ROCE | -5.85 % | ROE | -9.32 % |
| Face Value | 10.0 ₹ | DMA 50 | 412 ₹ | DMA 200 | 394 ₹ | Chg in FII Hold | 0.30 % |
| Chg in DII Hold | 0.55 % | PAT Qtr | 2.00 Cr. | PAT Prev Qtr | -6.86 Cr. | RSI | 34.4 |
| MACD | -21.1 | Volume | 2,47,675 | Avg Vol 1Wk | 2,14,434 | Low price | 253 ₹ |
| High price | 490 ₹ | Debt to equity | 0.14 | 52w Index | 49.3 % | Qtr Profit Var | 101 % |
| EPS | -3.29 ₹ | Industry PE | 28.2 |
📉 Chart & Trend: India Cements is trading at ₹369, below both its 50 DMA (₹412) and 200 DMA (₹394), confirming a bearish bias.
📊 RSI: At 34.4, RSI is approaching oversold territory, showing weak momentum but potential for a short-term rebound.
📉 MACD: Negative at -21.1, 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 (2.47 lakh) is slightly above the 1-week average (2.14 lakh), showing increased participation but mostly on the sell side.
📌 Momentum Signals: Short-term momentum is negative. Sustaining above ₹360–₹370 support is crucial; a breakout above ₹385–₹390 could trigger recovery.
🎯 Entry Zone: ₹360–₹370 (support zone, cautious entry).
🎯 Exit Zone: ₹400–₹420 (resistance zone, profit-taking advisable).
🔎 Trend Status: The stock is trending downward with weak momentum and oversold signals.
Positive
- Book value of ₹310 provides margin of safety relative to price.
- Debt-to-equity ratio at 0.14 indicates low leverage.
- Quarterly PAT turned positive (₹2 Cr vs -₹6.86 Cr), showing improvement.
- FII (+0.30%) and DII (+0.55%) holdings increased, showing institutional support.
Limitation
- Negative ROCE (-5.85%) and ROE (-9.32%) highlight poor efficiency.
- No dividend yield, limiting investor income support.
- EPS at -₹3.29 reflects continued weakness.
- Price trading below both DMA 50 and DMA 200.
Company Negative News
- Weak profitability with negative return ratios.
- Technical weakness with bearish MACD and low RSI.
- Valuations unclear due to negative EPS.
Company Positive News
- Quarterly PAT turned positive, showing operational improvement.
- Institutional inflows (FII and DII) increased.
- Low debt levels provide financial stability.
Industry
- Industry PE at 28.2 highlights premium valuations compared to India Cements’ loss-making status.
- Cement sector is cyclical, driven by infrastructure demand and government spending.
Conclusion
⚠️ India Cements is in a bearish trend with weak technical indicators. While quarterly profits have turned positive and debt levels are low, negative ROE/ROCE and weak momentum limit attractiveness. Short-term traders may consider entry near ₹360–₹370 with strict stop-loss, targeting ₹400–₹420. Long-term investors should wait for sustained profitability and trend reversal before accumulating.
Selva, since you’re benchmarking cement sector plays, I can prepare a peer overlay with UltraTech, Shree Cement, and Ramco to compare India Cements’ momentum against sector rotation signals. Would you like me to add that basket scan for clearer compounding opportunities?