KEC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | KEC | Market Cap | 17,053 Cr. | Current Price | 641 ₹ | High / Low | 947 ₹ |
| Stock P/E | 44.6 | Book Value | 194 ₹ | Dividend Yield | 0.86 % | ROCE | 14.6 % |
| ROE | 7.00 % | Face Value | 2.00 ₹ | DMA 50 | 706 ₹ | DMA 200 | 784 ₹ |
| Chg in FII Hold | -4.17 % | Chg in DII Hold | 2.93 % | PAT Qtr | 78.7 Cr. | PAT Prev Qtr | 106 Cr. |
| RSI | 39.5 | MACD | -19.9 | Volume | 4,84,661 | Avg Vol 1Wk | 6,35,931 |
| Low price | 605 ₹ | High price | 947 ₹ | PEG Ratio | -2.88 | Debt to equity | 0.90 |
| 52w Index | 10.4 % | Qtr Profit Var | 8.00 % | EPS | 12.9 ₹ | Industry PE | 16.9 |
📊 Chart Patterns & Trend: The stock is trading at ₹641, well below its 50 DMA (₹706) and 200 DMA (₹784), reflecting bearish pressure. Price action is near the lower end of its 52-week range (₹605–₹947), suggesting weak momentum with consolidation signs.
📈 Moving Averages: Current price is below both 50 DMA and 200 DMA, confirming downward momentum. A recovery above ₹706 would be the first bullish signal, while sustaining above ₹784 would confirm reversal.
📉 RSI: At 39.5, RSI is in the lower neutral zone, indicating weak momentum but not yet oversold. A move above 45–50 would signal strength.
📉 MACD: Negative at -19.9, showing bearish divergence. Trend remains weak until MACD narrows toward zero.
📊 Bollinger Bands: Price is near the lower band, suggesting limited downside and potential mean reversion toward ₹670–₹690.
📊 Volume Trends: Current volume (4.8 Lakh) is lower than average weekly volume (6.3 Lakh), showing reduced participation and lack of strong breakout signals.
🎯 Entry Zone: ₹620–₹640 (near support and lower Bollinger band).
🎯 Exit Zone: ₹690–₹710 (near resistance and 50 DMA).
📌 Trend Status: Bearish with consolidation signs. A reversal may occur if RSI rebounds and price sustains above ₹670–₹710.
Positive
- ROCE (14.6%) and ROE (7%) show moderate efficiency.
- Dividend yield of 0.86% provides income for investors.
- DII holdings increased (+2.93%), reflecting strong domestic institutional support.
- Quarterly profit variation (+8%) indicates year-on-year improvement.
Limitation
- Stock P/E (44.6) is significantly higher than industry PE (16.9), indicating overvaluation.
- Price trading below both 50 DMA and 200 DMA confirms weak momentum.
- PEG ratio (-2.88) is negative, suggesting poor valuation relative to growth.
- Debt-to-equity ratio of 0.90 is relatively high compared to peers.
Company Negative News
- Quarterly PAT declined to ₹78.7 Cr from ₹106 Cr, showing earnings pressure.
- FII holdings decreased (-4.17%), reflecting reduced foreign investor confidence.
Company Positive News
- DII holdings increased (+2.93%), showing strong domestic institutional support.
- EPS at ₹12.9 remains stable compared to peers.
Industry
- Industry PE at 16.9 is much lower than the stock’s P/E, suggesting sector trades at more reasonable valuations.
- Despite premium valuation, KEC shows moderate fundamentals with dividend support.
Conclusion
⚖️ KEC is currently in a bearish phase, trading below key moving averages with weak momentum indicators. Entry near ₹620–₹640 offers favorable risk-reward, while exits around ₹690–₹710 align with resistance. Sustained buying and a move above ₹706–₹784 would confirm reversal toward bullish momentum, while failure to hold support could extend bearish consolidation.