INTELLECT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | INTELLECT | Market Cap | 12,361 Cr. | Current Price | 885 ₹ | High / Low | 1,255 ₹ |
| Stock P/E | 53.2 | Book Value | 141 ₹ | Dividend Yield | 0.45 % | ROCE | 14.2 % |
| ROE | 10.5 % | Face Value | 5.00 ₹ | DMA 50 | 971 ₹ | DMA 200 | 987 ₹ |
| Chg in FII Hold | -0.93 % | Chg in DII Hold | -0.08 % | PAT Qtr | 17.3 Cr. | PAT Prev Qtr | 69.2 Cr. |
| RSI | 38.4 | MACD | -27.2 | Volume | 14,40,314 | Avg Vol 1Wk | 4,54,312 |
| Low price | 555 ₹ | High price | 1,255 ₹ | PEG Ratio | -409 | Debt to equity | 0.01 |
| 52w Index | 47.1 % | Qtr Profit Var | -49.3 % | EPS | 15.0 ₹ | Industry PE | 23.9 |
📉 Chart & Trend Analysis: INTELLECT is trading at ₹885, below both its 50 DMA (₹971) and 200 DMA (₹987), signaling weakness. RSI at 38.4 suggests the stock is nearing oversold territory. MACD at -27.2 confirms bearish momentum. Bollinger Bands show price drifting toward the lower band, indicating sustained selling pressure. Current volume (14.4L) is significantly higher than the 1-week average (4.5L), suggesting strong selling activity.
🔑 Momentum Signals: Short-term momentum is bearish with immediate support at ₹850 and major support at ₹820. Resistance lies at ₹920–₹940 (near 50 DMA). Optimal entry zone: ₹850–₹870 for risk-tolerant traders. Exit zone: ₹920–₹940 if recovery occurs. Trend status: Reversing downward.
Positive ✅
- Low debt-to-equity (0.01) indicates strong balance sheet stability.
- Dividend yield of 0.45% provides modest income support.
- EPS of ₹15 shows consistent earnings base despite recent volatility.
Limitation ⚠️
- Stock P/E (53.2) is much higher than industry PE (23.9), indicating overvaluation.
- ROCE (14.2%) and ROE (10.5%) are modest compared to peers.
- PEG ratio (-409) highlights poor growth-adjusted valuation.
- Trading below both 50 DMA and 200 DMA confirms weak technical strength.
Company Negative News 📉
- Quarterly PAT dropped sharply to ₹17.3 Cr from ₹69.2 Cr, a 49.3% decline.
- FII holding decreased (-0.93%), showing reduced foreign investor confidence.
- DII holding also slipped (-0.08%), reflecting cautious domestic sentiment.
Company Positive News 📊
- Strong balance sheet with negligible debt supports long-term sustainability.
- 52-week low at ₹555 provides margin-of-safety zone for long-term investors.
Industry 🌐
- Industry PE at 23.9 is significantly lower than INTELLECT’s PE, suggesting sector peers may be more attractively valued.
- IT product and fintech solutions sector continues to benefit from digital adoption trends globally.
Conclusion 📝
INTELLECT is currently in a bearish reversal phase, trading below key moving averages with weak momentum indicators. Fundamentals show balance sheet strength but earnings volatility and high valuation remain concerns. Risk-tolerant traders may consider entries near ₹850–₹870 with exits around ₹920–₹940, while long-term investors should wait for earnings stability and confirmation of trend reversal above the 50 DMA.
Would you like me to also prepare a peer benchmarking overlay comparing INTELLECT with other mid-cap IT product companies (like Oracle Financial Services, Nucleus Software, or Ramco Systems) to highlight relative valuation and momentum?