IRB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | IRB | Market Cap | 24,536 Cr. | Current Price | 40.6 ₹ | High / Low | 55.2 ₹ |
| Stock P/E | 27.2 | Book Value | 25.2 ₹ | Dividend Yield | 0.74 % | ROCE | 7.21 % |
| ROE | 8.13 % | Face Value | 1.00 ₹ | DMA 50 | 41.7 ₹ | DMA 200 | 44.8 ₹ |
| Chg in FII Hold | -0.08 % | Chg in DII Hold | 0.39 % | PAT Qtr | 188 Cr. | PAT Prev Qtr | 140 Cr. |
| RSI | 46.4 | MACD | -0.39 | Volume | 1,24,79,235 | Avg Vol 1Wk | 92,78,449 |
| Low price | 38.6 ₹ | High price | 55.2 ₹ | PEG Ratio | 0.59 | Debt to equity | 0.78 |
| 52w Index | 12.2 % | Qtr Profit Var | 17.8 % | EPS | 9.34 ₹ | Industry PE | 16.9 |
📊 Chart Patterns & Trend: IRB is consolidating near the 40–42 ₹ zone. Price is below both the 50 DMA (41.7 ₹) and 200 DMA (44.8 ₹), indicating short-term weakness but support around 38.6 ₹.
📈 Moving Averages: 50 DMA and 200 DMA are acting as resistance. Sustained move above 45 ₹ would confirm bullish momentum.
📉 RSI: At 46.4, RSI is neutral, suggesting sideways consolidation with limited buying strength.
📉 MACD: Slightly negative (-0.39), showing mild bearish crossover and lack of strong momentum.
📊 Bollinger Bands: Price is near the mid-band, reflecting consolidation. Breakout above 44–45 ₹ could trigger momentum toward 48–50 ₹.
📊 Volume Trends: Current volume (1.24 Cr.) is higher than average weekly volume (0.92 Cr.), showing active participation despite consolidation.
🎯 Entry Zone: 39–41 ₹ (support zone).
🎯 Exit Zone: 48–50 ₹ (resistance zone).
🔑 Stop Loss: 38 ₹ (below recent support).
Positive
- Quarterly PAT increased from 140 Cr. to 188 Cr. (17.8% growth).
- EPS at 9.34 ₹ supports valuation strength.
- Dividend yield of 0.74% adds income stability.
- Debt-to-equity ratio at 0.78 shows manageable leverage.
Limitation
- Price trading below both 50 DMA and 200 DMA confirms short-term weakness.
- ROCE at 7.21% and ROE at 8.13% are modest compared to peers.
- Stock P/E at 27.2 is higher than industry PE (16.9), suggesting overvaluation.
- 52-week index gain only 12.2%, showing limited relative performance.
Company Negative News
- FII holdings decreased (-0.08%), reflecting reduced foreign investor confidence.
- Stock has corrected from 55.2 ₹ to 40.6 ₹, showing investor caution.
Company Positive News
- DII holdings increased (+0.39%), showing domestic institutional support.
- Quarterly profit growth supports earnings momentum.
- Strong trading volume indicates active investor participation.
Industry
- Industry PE at 16.9 vs. stock PE at 27.2 highlights premium valuation.
- Infrastructure and road development sector supported by government spending and long-term projects.
Conclusion
⚖️ IRB is in a consolidation phase with mild bearish signals (MACD negative, RSI neutral). Medium-term outlook remains supported by earnings growth and manageable leverage, but valuation is stretched compared to industry peers. Entry near 39–41 ₹ offers margin of safety, while breakout above 45 ₹ could trigger momentum toward 50 ₹. Risk management is essential due to modest return ratios and limited sector performance.
Would you like me to extend this into a sector benchmarking overlay with other infrastructure developers (like KNR Constructions, Ashoka Buildcon, and Dilip Buildcon) to highlight relative strength and rotation opportunities?