JKCEMENT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | JKCEMENT | Market Cap | 42,331 Cr. | Current Price | 5,478 ₹ | High / Low | 7,566 ₹ |
| Stock P/E | 38.6 | Book Value | 833 ₹ | Dividend Yield | 0.27 % | ROCE | 14.5 % |
| ROE | 14.6 % | Face Value | 10.0 ₹ | DMA 50 | 5,718 ₹ | DMA 200 | 5,773 ₹ |
| Chg in FII Hold | -0.68 % | Chg in DII Hold | 0.75 % | PAT Qtr | 211 Cr. | PAT Prev Qtr | 176 Cr. |
| RSI | 43.6 | MACD | -42.5 | Volume | 20,657 | Avg Vol 1Wk | 1,41,125 |
| Low price | 4,219 ₹ | High price | 7,566 ₹ | PEG Ratio | 9.01 | Debt to equity | 0.99 |
| 52w Index | 37.6 % | Qtr Profit Var | 5.47 % | EPS | 143 ₹ | Industry PE | 30.0 |
📉 Chart & Trend Analysis: JKCEMENT is trading at ₹5,478, below both its 50 DMA (₹5,718) and 200 DMA (₹5,773), signaling weak technical strength. RSI at 43.6 suggests the stock is in neutral-to-oversold territory. MACD at -42.5 confirms bearish momentum. Bollinger Bands show price leaning toward the lower band, indicating sustained selling pressure. Current volume (20K) is significantly below the 1-week average (141K), reflecting weak participation.
🔑 Momentum Signals: Short-term momentum is bearish with immediate support at ₹5,400 and major support at ₹5,200. Resistance lies at ₹5,700–₹5,750 (DMA zone). Optimal entry zone: ₹5,350–₹5,450 for risk-managed traders. Exit zone: ₹5,700–₹5,750 if recovery occurs. Trend status: Reversing downward.
Positive ✅
- ROCE (14.5%) and ROE (14.6%) indicate steady capital efficiency.
- Quarterly PAT growth (₹211 Cr vs ₹176 Cr) shows earnings improvement.
- DII holding increased (+0.75%), reflecting domestic institutional support.
- EPS of ₹143 highlights strong profitability base.
Limitation ⚠️
- Stock trading below both 50 DMA and 200 DMA, confirming weak technical strength.
- High P/E (38.6) compared to industry PE (30.0) suggests overvaluation.
- PEG ratio of 9.01 highlights stretched valuation relative to growth.
- Debt-to-equity ratio of 0.99 indicates significant leverage.
- Volume trend weaker than average, showing lack of strong buying support.
Company Negative News 📉
- FII holding decreased (-0.68%), showing reduced foreign investor confidence.
- Stock has fallen from 52-week high of ₹7,566 to ₹5,478, eroding sentiment.
Company Positive News 📊
- Quarterly profit variation of 5.47% indicates operational resilience.
- Strong book value of ₹833 provides margin-of-safety for long-term investors.
Industry 🌐
- Industry PE at 30.0 is lower than JKCEMENT’s PE of 38.6, suggesting sector peers may be more attractively valued.
- Cement sector outlook remains positive with infrastructure demand driving growth.
Conclusion 📝
JKCEMENT is currently in a bearish reversal phase, trading below key moving averages with weak momentum indicators. While fundamentals show profitability and institutional support, high valuation and leverage remain concerns. Risk-tolerant traders may consider entries near ₹5,350–₹5,450 with exits around ₹5,700–₹5,750, while long-term investors should wait for confirmation of trend reversal above the 200 DMA.
Would you like me to also prepare a peer benchmarking overlay comparing JKCEMENT with cement peers like Ultratech, Shree Cement, and Ramco Cement to highlight relative strength and valuation?