KEI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | KEI | Market Cap | 38,055 Cr. | Current Price | 3,974 ₹ | High / Low | 4,588 ₹ |
| Stock P/E | 44.2 | Book Value | 647 ₹ | Dividend Yield | 0.11 % | ROCE | 21.3 % |
| ROE | 15.6 % | Face Value | 2.00 ₹ | DMA 50 | 4,165 ₹ | DMA 200 | 4,002 ₹ |
| Chg in FII Hold | -0.33 % | Chg in DII Hold | 0.56 % | PAT Qtr | 235 Cr. | PAT Prev Qtr | 204 Cr. |
| RSI | 40.1 | MACD | -100 | Volume | 1,59,374 | Avg Vol 1Wk | 3,21,253 |
| Low price | 2,424 ₹ | High price | 4,588 ₹ | PEG Ratio | 1.94 | Debt to equity | 0.04 |
| 52w Index | 71.6 % | Qtr Profit Var | 42.5 % | EPS | 90.0 ₹ | Industry PE | 17.9 |
📊 Chart Patterns & Trend: The stock is trading at ₹3,974, below both its 50 DMA (₹4,165) and 200 DMA (₹4,002), reflecting mild bearish pressure. Price action suggests consolidation near support zones around ₹3,950–₹3,970.
📈 Moving Averages: Current price is below both 50 DMA and 200 DMA, confirming weak momentum. A breakout above ₹4,165 would be the first bullish signal, while sustaining above ₹4,200–₹4,250 would confirm reversal.
📉 RSI: At 40.1, RSI is in the lower neutral zone, indicating weak momentum but not oversold. A move above 50 would signal strength.
📉 MACD: Deeply negative at -100, showing strong bearish momentum. Trend remains weak unless MACD narrows toward zero.
📊 Bollinger Bands: Price is near the lower band, suggesting limited downside and potential mean reversion toward ₹4,100–₹4,200.
📊 Volume Trends: Current volume (1.59 Lakh) is lower than average weekly volume (3.21 Lakh), showing reduced participation and lack of strong breakout signals.
🎯 Entry Zone: ₹3,900–₹3,975 (near support and lower Bollinger band).
🎯 Exit Zone: ₹4,150–₹4,250 (near 50 DMA and resistance zone).
📌 Trend Status: Consolidating with bearish bias. A reversal may occur if price sustains above ₹4,165–₹4,200.
Positive
- Strong ROCE (21.3%) and ROE (15.6%) highlight efficient capital use.
- Low debt-to-equity ratio (0.04) ensures financial stability.
- Quarterly PAT improved to ₹235 Cr from ₹204 Cr, showing earnings growth.
- EPS at ₹90.0 is robust compared to peers.
Limitation
- Stock P/E (44.2) is significantly higher than industry PE (17.9), indicating overvaluation.
- Price trading below both 50 DMA and 200 DMA confirms weak momentum.
- PEG ratio (1.94) suggests valuation is stretched relative to growth.
Company Negative News
- FII holdings decreased (-0.33%), showing reduced foreign investor confidence.
- Dividend yield is very low (0.11%), offering minimal income return.
Company Positive News
- DII holdings increased (+0.56%), reflecting domestic institutional support.
- Quarterly profit growth (+42.5%) indicates strong operational performance.
Industry
- Industry PE at 17.9 is much lower than the stock’s P/E, suggesting sector trades at more reasonable valuations.
- Despite premium valuation, KEI shows strong growth potential supported by earnings momentum.
Conclusion
⚖️ KEI is consolidating near support levels with weak momentum indicators (RSI and MACD). Entry near ₹3,900–₹3,975 offers favorable risk-reward, while exits around ₹4,150–₹4,250 align with resistance. Sustained buying and a move above ₹4,165–₹4,200 would confirm reversal toward bullish momentum, while failure to hold support could extend bearish consolidation.