KAJARIACER - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | KAJARIACER | Market Cap | 15,332 Cr. | Current Price | 963 ₹ | High / Low | 1,322 ₹ |
| Stock P/E | 43.1 | Book Value | 174 ₹ | Dividend Yield | 0.93 % | ROCE | 16.8 % |
| ROE | 10.8 % | Face Value | 1.00 ₹ | DMA 50 | 963 ₹ | DMA 200 | 1,050 ₹ |
| Chg in FII Hold | 0.09 % | Chg in DII Hold | 0.30 % | PAT Qtr | 106 Cr. | PAT Prev Qtr | 121 Cr. |
| RSI | 52.6 | MACD | -8.49 | Volume | 8,20,877 | Avg Vol 1Wk | 5,10,261 |
| Low price | 745 ₹ | High price | 1,322 ₹ | PEG Ratio | -5.26 | Debt to equity | 0.04 |
| 52w Index | 37.8 % | Qtr Profit Var | 33.3 % | EPS | 16.2 ₹ | Industry PE | 40.2 |
📈 Chart & Trend: The stock is trading exactly at its 50 DMA (963 ₹) but below its 200 DMA (1,050 ₹), showing short-term stability but medium-term weakness. Current price (963 ₹) is well off its 52-week high (1,322 ₹), reflecting consolidation after a correction.
📊 Momentum Indicators: RSI at 52.6 indicates neutral momentum, neither overbought nor oversold. MACD at -8.49 shows mild bearish bias. Bollinger Bands suggest price is stabilizing near the mid-band, consistent with consolidation.
🔎 Volume Trends: Current volume (8.2 lakh) is higher than the 1-week average (5.1 lakh), showing increased participation, possibly accumulation at current levels.
💡 Entry Zone: 940–960 ₹ (near support at 920–950 ₹, offering tactical entry)
💡 Exit Zone: 1,020–1,050 ₹ (resistance near 1,050 ₹, aligning with 200 DMA)
📌 Trend Status: The stock is consolidating with mild bearish undertones, awaiting breakout above 1,050 ₹ for trend reversal.
Positive
- Strong ROCE (16.8%) and ROE (10.8%) highlight decent capital efficiency.
- Low debt-to-equity (0.04) indicates a healthy balance sheet.
- Dividend yield of 0.93% provides income support.
- EPS of 16.2 ₹ reflects steady profitability.
Limitation
- High P/E (43.1) compared to industry P/E (40.2), making valuation slightly expensive.
- PEG ratio (-5.26) suggests poor earnings growth relative to valuation.
- Stock trading below 200 DMA shows medium-term weakness.
Company Negative News
- PAT declined from 121 Cr to 106 Cr, reflecting earnings slowdown.
- MACD negative indicates weak short-term momentum.
Company Positive News
- FII holding increased (+0.09%) and DII holding increased (+0.30%), showing institutional support.
- Quarterly profit growth (+33.3%) highlights operational improvement despite sequential decline.
Industry
- Industry P/E (40.2) is slightly lower than company P/E (43.1), suggesting sector peers trade at more reasonable valuations.
- 52-week industry index return of 37.8% shows strong sector momentum.
Conclusion
⚖️ Kajaria Ceramics is consolidating near its 50 DMA, with neutral RSI and mild bearish MACD. Fundamentals remain steady, but valuation is stretched and growth metrics are weak. Tactical strategy: accumulate near 940–960 ₹ with strict stop-loss below 920 ₹, and target exits around 1,020–1,050 ₹. Sustained recovery requires crossing 1,050 ₹ resistance for trend reversal.
Would you like me to prepare a peer benchmarking overlay against other ceramic and building material companies? That would help clarify whether Kajaria’s valuation premium is justified compared to sector peers.