JBMA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 2.9

📉 JBMA is showing signs of short-term weakness with bearish momentum and declining volume, suggesting a potential reversal or consolidation phase.

📊 Technical Analysis

• Trend: The stock is reversing from its highs and currently consolidating near key moving averages

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• Moving Averages: Price is below both 50 DMA (₹663) and 200 DMA (₹685), indicating bearish sentiment.
• RSI (50.2): Neutral zone, showing lack of strong momentum either way.
• MACD (-1.10): Bearish crossover confirmed, suggesting downward pressure

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• Bollinger Bands: Price is near the lower band, indicating potential support but also increased volatility.
• Volume: Current volume (4.70L) is lower than 1-week average (5.94L), showing reduced trading interest.

Sources

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🎯 Entry & Exit Zones

• Support Zone: ₹640 – ₹650 (recent consolidation base)
• Resistance Zone: ₹685 – ₹700 (200 DMA and psychological level)
• Optimal Entry: ₹645 – ₹655 (if price stabilizes and RSI improves)
• Exit Target: ₹685 – ₹700 (short-term recovery zone)

✅ Positive

• Quarterly PAT increased from ₹32.1 Cr. to ₹45.1 Cr., showing earnings growth.
• ROCE (14.3%) and ROE (12.1%) indicate decent capital efficiency.
• EPS of ₹6.21 and 52-week gain of 41.4% reflect long-term investor interest.

⚠️ Limitation

• High P/E ratio (106) and negative PEG (-20.4) suggest overvaluation.
• Debt-to-equity ratio of 1.56 is elevated, increasing financial risk.
• MACD and volume trends indicate weak momentum and possible downside.

📉 Company Negative News

• FII holding decreased by 0.40%, showing reduced foreign investor confidence.
• DII holding also slightly declined (-0.01%), indicating cautious domestic sentiment.

📈 Company Positive News

• Strong quarterly profit growth (48.2%) suggests operational improvement.
• Stable dividend yield and consistent earnings support long-term valuation.

🏭 Industry

• Industry P/E is 33.4, significantly lower than JBMA’s, indicating sector-wide caution.
• Auto parts sector is cyclical and sensitive to macroeconomic trends and EV adoption.

🧾 Conclusion

• JBMA is currently consolidating with weak technical indicators and bearish momentum.
• Short-term traders should wait for MACD to flatten and RSI to rise above 55 before entering.
• Long-term investors may consider accumulating near ₹650 with a target of ₹700, keeping stop-loss below ₹640.