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KAYNES - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.8

Last Updated Time : 03 May 26, 11:24 am

Technical Rating: 3.8

Stock Code KAYNES Market Cap 27,112 Cr. Current Price 4,044 ₹ High / Low 7,705 ₹
Stock P/E 111 Book Value 651 ₹ Dividend Yield 0.00 % ROCE 11.9 %
ROE 7.97 % Face Value 10.0 ₹ DMA 50 3,959 ₹ DMA 200 4,668 ₹
Chg in FII Hold -1.59 % Chg in DII Hold -1.60 % PAT Qtr 67.6 Cr. PAT Prev Qtr 62.9 Cr.
RSI 51.9 MACD 116 Volume 9,99,229 Avg Vol 1Wk 11,19,753
Low price 3,295 ₹ High price 7,705 ₹ PEG Ratio 1.57 Debt to equity 0.08
52w Index 17.0 % Qtr Profit Var 77.7 % EPS 36.8 ₹ Industry PE 32.4

📈 Chart Patterns: KAYNES is consolidating with weak momentum, trading near 50 DMA support but below 200 DMA, showing medium-term resistance.

📊 Moving Averages: Price above 50 DMA (3,959 ₹) but below 200 DMA (4,668 ₹), indicating short-term stability but medium-term weakness.

📉 RSI: At 51.9, RSI suggests neutral momentum with limited bullish strength.

📈 MACD: Positive at 116, signaling mild bullish momentum but not strongly convincing.

📊 Bollinger Bands: Price near mid-band, reflecting consolidation with potential breakout if volume improves.

📉 Volume Trends: Current volume (9.99L) slightly below weekly average (11.2L), showing weaker participation.

🔑 Short-Term Momentum Signals: Mild bullish bias supported by MACD, but neutral RSI and weak volume temper conviction.

🎯 Entry Zone: 3,950–4,050 ₹ near 50 DMA support.

🎯 Exit Zone: 4,200–4,300 ₹ near resistance cluster.

📌 Trend Status: Consolidating with mild bullish bias.

Positive

  • Quarterly PAT growth (+77.7%).
  • PEG ratio of 1.57 indicates fair valuation relative to growth.
  • Low debt-to-equity ratio (0.08).
  • EPS at 36.8 ₹ supports valuation strength.

Limitation

  • Very high P/E of 111 compared to industry PE of 32.4.
  • ROCE (11.9%) and ROE (7.97%) are weak relative to peers.
  • Price below 200 DMA, facing medium-term resistance.
  • Volume below average, limiting breakout potential.

Company Negative News

  • Decline in FII holdings (-1.59%) and DII holdings (-1.60%).
  • Valuation concerns with extremely high P/E multiple.

Company Positive News

  • Strong quarterly PAT growth (62.9 Cr. → 67.6 Cr.).
  • EPS improvement supports earnings consistency.

Industry

  • Industry PE at 32.4, significantly lower than KAYNES’s P/E of 111, suggesting premium valuation.
  • Sector momentum moderate with 52-week index at 17.0%.

Conclusion

KAYNES is consolidating with mild bullish signals supported by MACD and earnings growth. Entry near 3,950–4,050 ₹ offers favorable positioning, while exits around 4,200–4,300 ₹ capture resistance levels. Strong profit growth supports optimism, but stretched valuation, weak ROCE/ROE, and declining institutional participation warrant cautious trading.

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