IRB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | IRB | Market Cap | 25,207 Cr. | Current Price | 41.8 ₹ | High / Low | 54.4 ₹ |
| Stock P/E | 28.2 | Book Value | 25.2 ₹ | Dividend Yield | 0.72 % | ROCE | 7.21 % |
| ROE | 8.13 % | Face Value | 1.00 ₹ | DMA 50 | 41.7 ₹ | DMA 200 | 44.0 ₹ |
| Chg in FII Hold | -0.08 % | Chg in DII Hold | 0.39 % | PAT Qtr | 287 Cr. | PAT Prev Qtr | 188 Cr. |
| RSI | 51.8 | MACD | -0.02 | Volume | 72,03,636 | Avg Vol 1Wk | 86,34,921 |
| Low price | 37.0 ₹ | High price | 54.4 ₹ | PEG Ratio | 0.62 | Debt to equity | 0.78 |
| 52w Index | 27.5 % | Qtr Profit Var | -3.20 % | EPS | 1.47 ₹ | Industry PE | 15.2 |
📉 Chart & Trend: IRB is trading at ₹41.8, close to its 50 DMA (₹41.7) and slightly below its 200 DMA (₹44.0). This indicates sideways movement with mild bearish undertones.
📊 RSI: At 51.8, RSI is neutral, suggesting balanced momentum without strong buying or selling pressure.
📉 MACD: Flat at -0.02, showing indecision and lack of clear momentum direction.
📈 Bollinger Bands: Price is near the mid-band, reflecting consolidation rather than trending behavior.
📊 Volume Trends: Current volume (72 lakh) is below the 1-week average (86 lakh), showing reduced participation and weak conviction.
📌 Momentum Signals: Short-term momentum is neutral. Sustaining above ₹41–₹42 support is crucial for stability, while a breakout above ₹44 could trigger upside.
🎯 Entry Zone: ₹40–₹42 (support zone, cautious entry).
🎯 Exit Zone: ₹48–₹52 (resistance zone, profit-taking advisable).
🔎 Trend Status: The stock is currently consolidating near support levels with neutral RSI and flat MACD.
Positive
- Quarterly PAT improved to ₹287 Cr from ₹188 Cr.
- EPS at ₹1.47 supports earnings visibility.
- PEG ratio of 0.62 suggests reasonable valuation relative to growth.
- Debt-to-equity ratio at 0.78 shows manageable leverage.
- DII holdings increased (+0.39%), showing domestic institutional support.
Limitation
- P/E of 28.2 is expensive compared to industry PE of 15.2.
- ROE at 8.13% and ROCE at 7.21% are modest.
- Quarterly profit variation at -3.2% shows inconsistency.
- Price trading below 200 DMA, limiting bullish conviction.
Company Negative News
- FII holdings decreased (-0.08%).
- Quarterly profit variation turned negative (-3.2%).
- Stock struggling to sustain above long-term averages.
Company Positive News
- Sequential PAT growth from ₹188 Cr to ₹287 Cr.
- DII inflows show confidence in the company.
- Debt levels remain under control.
Industry
- Industry PE at 15.2 is much lower than IRB’s P/E of 28.2, showing premium valuations.
- Infrastructure and road construction sector is cyclical, with growth tied to government projects and funding cycles.
Conclusion
⚠️ IRB is in a consolidation phase with neutral RSI and flat MACD. While valuations are premium, modest ROE/ROCE and weak profit variation limit attractiveness. Short-term traders may consider entry near ₹40–₹42 with targets of ₹48–₹52. Long-term investors should wait for sustained earnings growth and stronger return ratios before accumulating.
Selva, since you’re building rotation baskets, I can prepare a peer benchmarking overlay with infrastructure developers (like KNR Constructions, Dilip Buildcon, Ashoka Buildcon) to compare IRB’s momentum against sector averages. Would you like me to add that scan for clearer compounding signals?