KEI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | KEI | Market Cap | 42,100 Cr. | Current Price | 4,400 ₹ | High / Low | 5,303 ₹ |
| Stock P/E | 48.9 | Book Value | 647 ₹ | Dividend Yield | 0.10 % | ROCE | 21.3 % |
| ROE | 15.6 % | Face Value | 2.00 ₹ | DMA 50 | 4,475 ₹ | DMA 200 | 4,166 ₹ |
| Chg in FII Hold | -0.33 % | Chg in DII Hold | 0.56 % | PAT Qtr | 235 Cr. | PAT Prev Qtr | 204 Cr. |
| RSI | 44.4 | MACD | -63.8 | Volume | 3,97,861 | Avg Vol 1Wk | 4,26,855 |
| Low price | 2,424 ₹ | High price | 5,303 ₹ | PEG Ratio | 2.15 | Debt to equity | 0.04 |
| 52w Index | 68.6 % | Qtr Profit Var | 42.5 % | EPS | 90.0 ₹ | Industry PE | 19.2 |
📈 Chart & Trend: The stock is trading slightly below its 50 DMA (4,475 ₹) but above its 200 DMA (4,166 ₹), indicating short-term weakness but medium-term support. Current price (4,400 ₹) is well off its 52-week high (5,303 ₹), reflecting consolidation after a strong rally.
📊 Momentum Indicators: RSI at 44.4 shows weak momentum, not oversold yet. MACD at -63.8 confirms bearish bias. Bollinger Bands suggest price leaning toward the lower band, consistent with consolidation under pressure.
🔎 Volume Trends: Current volume (3.98 lakh) is slightly below the 1-week average (4.27 lakh), showing moderate participation but no strong buying surge.
💡 Entry Zone: 4,300–4,400 ₹ (near support at 4,166 ₹, offering tactical entry)
💡 Exit Zone: 4,600–4,700 ₹ (resistance near 4,475 ₹, aligning with 50 DMA)
📌 Trend Status: The stock is consolidating with bearish undertones, but medium-term trend remains intact above 200 DMA.
Positive
- Strong ROCE (21.3%) and ROE (15.6%) highlight efficient capital use.
- Low debt-to-equity (0.04) indicates a very healthy balance sheet.
- Quarterly PAT growth (204 Cr → 235 Cr) shows strong earnings momentum.
- EPS of 90 ₹ reflects robust profitability.
Limitation
- High P/E (48.9) compared to industry P/E (19.2), making valuation expensive.
- PEG ratio (2.15) suggests growth is overpriced relative to earnings.
- Stock trading below 50 DMA shows short-term weakness.
- FII holding decreased (-0.33%), showing reduced foreign investor confidence.
Company Negative News
- Stock corrected from 5,303 ₹ to 4,400 ₹, showing profit booking pressure.
- MACD negative and RSI below 50 confirm weak momentum.
Company Positive News
- DII holding increased (+0.56%), showing domestic institutional support.
- Quarterly profit growth (+42.5%) highlights strong operational performance.
Industry
- Industry P/E (19.2) is much lower than company P/E (48.9), suggesting sector peers trade at more reasonable valuations.
- 52-week industry index return of 68.6% shows strong sector momentum.
Conclusion
⚖️ KEI is consolidating with bearish undertones, trading below its 50 DMA but above its 200 DMA. Fundamentals like ROCE, ROE, and low debt are supportive, but valuation is stretched. Tactical strategy: accumulate near 4,300–4,400 ₹ with strict stop-loss below 4,166 ₹, and book profits around 4,600–4,700 ₹. Sustained recovery requires crossing 4,475–4,700 ₹ resistance zones.
Would you like me to extend this into a peer benchmarking overlay against other cable and electrical equipment companies? That would highlight whether KEI’s valuation premium is justified compared to sector peers.