INDIAMART - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | INDIAMART | Market Cap | 12,615 Cr. | Current Price | 2,098 ₹ | High / Low | 2,799 ₹ |
| Stock P/E | 18.4 | Book Value | 373 ₹ | Dividend Yield | 1.43 % | ROCE | 37.7 % |
| ROE | 30.0 % | Face Value | 10.0 ₹ | DMA 50 | 2,182 ₹ | DMA 200 | 2,310 ₹ |
| Chg in FII Hold | -3.25 % | Chg in DII Hold | 3.42 % | PAT Qtr | 206 Cr. | PAT Prev Qtr | 83.5 Cr. |
| RSI | 42.4 | MACD | -28.9 | Volume | 1,04,405 | Avg Vol 1Wk | 2,20,186 |
| Low price | 1,850 ₹ | High price | 2,799 ₹ | PEG Ratio | 0.73 | Debt to equity | 0.01 |
| 52w Index | 26.1 % | Qtr Profit Var | 65.0 % | EPS | 114 ₹ | Industry PE | 20.8 |
📉 Chart & Trend: IndiaMART is trading at ₹2,098, below both its 50 DMA (₹2,182) and 200 DMA (₹2,310), confirming a bearish bias.
📊 RSI: At 42.4, RSI is neutral-to-weak, showing mild selling pressure.
📉 MACD: Negative at -28.9, 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 (1.04 lakh) is significantly lower than the 1-week average (2.20 lakh), showing reduced participation and weak conviction.
📌 Momentum Signals: Short-term momentum is negative. Sustaining above ₹2,050–₹2,100 support is crucial; a breakout above ₹2,180 could trigger recovery.
🎯 Entry Zone: ₹2,050–₹2,100 (support zone, cautious entry).
🎯 Exit Zone: ₹2,250–₹2,300 (resistance zone, profit-taking advisable).
🔎 Trend Status: The stock is trending downward with weak momentum and bearish undertones.
Positive
- Strong ROCE (37.7%) and ROE (30.0%) highlight operational efficiency.
- Quarterly PAT surged to ₹206 Cr from ₹83.5 Cr (+65%).
- EPS at ₹114 supports valuations.
- DII holdings increased (+3.42%), showing domestic institutional confidence.
- PEG ratio at 0.73 suggests reasonable valuation relative to growth.
Limitation
- Price trading below both DMA 50 and DMA 200.
- RSI and MACD show weak momentum.
- FII holdings decreased (-3.25%).
- Dividend yield modest at 1.43%.
Company Negative News
- FII outflows (-3.25%) indicate reduced foreign confidence.
- Weak technical momentum with bearish MACD.
Company Positive News
- Strong quarterly profit growth (+65%).
- DII inflows (+3.42%) show domestic support.
- Debt-to-equity ratio at 0.01 indicates a nearly debt-free balance sheet.
Industry
- Industry PE at 20.8 is slightly higher than IndiaMART’s P/E of 18.4, showing relative undervaluation.
- E-commerce and B2B marketplace sector is growing, driven by digital adoption and SME participation.
Conclusion
⚠️ IndiaMART is in a bearish trend with weak technical indicators. While fundamentals are strong with high ROCE, ROE, and profit growth, technical weakness and FII outflows limit short-term attractiveness. Short-term traders may consider entry near ₹2,050–₹2,100 with strict stop-loss, targeting ₹2,250–₹2,300. Long-term investors can accumulate gradually, given strong fundamentals and sectoral tailwinds.
Selva, since you’re benchmarking digital and e-commerce plays, I can prepare a peer overlay with Info Edge, JustDial, and Nazara Tech to compare IndiaMART’s momentum against sector rotation signals. Would you like me to add that basket scan for clearer compounding opportunities?