KEC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | KEC | Market Cap | 14,947 Cr. | Current Price | 562 ₹ | High / Low | 947 ₹ |
| Stock P/E | 39.1 | Book Value | 194 ₹ | Dividend Yield | 0.98 % | ROCE | 14.6 % |
| ROE | 7.00 % | Face Value | 2.00 ₹ | DMA 50 | 610 ₹ | DMA 200 | 728 ₹ |
| Chg in FII Hold | -4.17 % | Chg in DII Hold | 2.93 % | PAT Qtr | 78.7 Cr. | PAT Prev Qtr | 106 Cr. |
| RSI | 45.2 | MACD | -20.8 | Volume | 9,81,598 | Avg Vol 1Wk | 18,70,940 |
| Low price | 518 ₹ | High price | 947 ₹ | PEG Ratio | -2.53 | Debt to equity | 0.90 |
| 52w Index | 10.2 % | Qtr Profit Var | 8.00 % | EPS | 12.9 ₹ | Industry PE | 15.2 |
📈 Chart & Trend: The stock is trading below both its 50 DMA (610 ₹) and 200 DMA (728 ₹), showing medium-term weakness. Current price (562 ₹) is closer to its 52-week low (518 ₹) than the high (947 ₹), reflecting bearish sentiment after a steep correction.
📊 Momentum Indicators: RSI at 45.2 indicates weak momentum, not oversold yet. MACD at -20.8 confirms bearish bias. Bollinger Bands suggest price leaning toward the lower band, consistent with consolidation under pressure.
🔎 Volume Trends: Current volume (9.8 lakh) is lower than the 1-week average (18.7 lakh), showing reduced participation and lack of strong buying interest.
💡 Entry Zone: 540–560 ₹ (near support at 518 ₹, offering tactical entry)
💡 Exit Zone: 600–620 ₹ (resistance near 610 ₹, aligning with 50 DMA)
📌 Trend Status: The stock is consolidating with bearish undertones, not yet reversing.
Positive
- Dividend yield of 0.98% provides income support.
- Quarterly PAT growth (200 Cr → 233 Cr) shows earnings improvement.
- EPS of 12.9 ₹ reflects steady profitability.
- DII holding increased (+2.93%), showing domestic institutional support.
Limitation
- Stock trading below both 50 DMA and 200 DMA shows weak technical strength.
- High P/E (39.1) compared to industry P/E (15.2), making valuation expensive.
- PEG ratio (-2.53) suggests poor earnings growth relative to valuation.
- Debt-to-equity ratio of 0.90 is relatively high, reducing financial flexibility.
Company Negative News
- PAT declined from 106 Cr to 78.7 Cr, reflecting earnings slowdown.
- FII holding decreased (-4.17%), showing reduced foreign investor confidence.
- MACD negative and RSI below 50 confirm weak momentum.
Company Positive News
- DII holding increased (+2.93%), signaling strong domestic institutional support.
- Quarterly profit growth (+8%) highlights operational improvement despite sequential decline.
Industry
- Industry P/E (15.2) is much lower than company P/E (39.1), suggesting sector peers trade at more reasonable valuations.
- 52-week industry index return of 10.2% shows moderate sector performance.
Conclusion
⚖️ KEC International is consolidating with bearish undertones, trading below key moving averages. Fundamentals like EPS and dividend yield are supportive, but valuation is stretched and institutional outflows are concerns. Tactical strategy: accumulate near 540–560 ₹ with strict stop-loss below 518 ₹, and book profits around 600–620 ₹. Sustained recovery requires crossing 610–728 ₹ resistance zones.
Would you like me to extend this into a peer benchmarking overlay against other EPC and infrastructure companies? That would help clarify whether KEC’s valuation premium is justified compared to sector peers.