KIMS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | KIMS | Market Cap | 23,754 Cr. | Current Price | 594 ₹ | High / Low | 798 ₹ |
| Stock P/E | 83.6 | Book Value | 57.2 ₹ | Dividend Yield | 0.00 % | ROCE | 16.0 % |
| ROE | 14.0 % | Face Value | 2.00 ₹ | DMA 50 | 638 ₹ | DMA 200 | 659 ₹ |
| Chg in FII Hold | -0.70 % | Chg in DII Hold | 0.60 % | PAT Qtr | 63.7 Cr. | PAT Prev Qtr | 58.8 Cr. |
| RSI | 39.8 | MACD | -11.5 | Volume | 2,10,272 | Avg Vol 1Wk | 4,95,652 |
| Low price | 474 ₹ | High price | 798 ₹ | PEG Ratio | 279 | Debt to equity | 0.46 |
| 52w Index | 36.8 % | Qtr Profit Var | -11.8 % | EPS | 7.30 ₹ | Industry PE | 45.2 |
📊 Chart Patterns & Trend: The stock is trading at ₹594, below both its 50 DMA (₹638) and 200 DMA (₹659), reflecting bearish pressure. Price action is closer to the lower end of its 52-week range (₹474–₹798), suggesting weak momentum and consolidation near support levels.
📈 Moving Averages: Current price is below both 50 DMA and 200 DMA, confirming downward momentum. A recovery above ₹638 would be the first bullish signal, while sustaining above ₹659 would confirm reversal.
📉 RSI: At 39.8, 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 -11.5, 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 ₹620–₹640.
📊 Volume Trends: Current volume (2.1 Lakh) is significantly lower than average weekly volume (4.9 Lakh), showing reduced participation and lack of strong breakout signals.
🎯 Entry Zone: ₹580–₹600 (near support and lower Bollinger band).
🎯 Exit Zone: ₹635–₹660 (near resistance and moving averages).
📌 Trend Status: Bearish with consolidation signs. A reversal may occur if RSI rebounds and price sustains above ₹638–₹659.
Positive
- ROCE (16%) and ROE (14%) highlight moderate efficiency.
- Quarterly PAT improved to ₹63.7 Cr from ₹58.8 Cr, showing sequential growth.
- DII holdings increased (+0.60%), reflecting domestic institutional support.
- EPS at ₹7.30 remains stable compared to peers.
Limitation
- Stock P/E (83.6) is significantly higher than industry PE (45.2), indicating overvaluation.
- Price trading below both 50 DMA and 200 DMA confirms weak momentum.
- PEG ratio (279) suggests extreme overvaluation relative to growth.
- Dividend yield is 0%, offering no income return for investors.
Company Negative News
- Quarterly profit variation (-11.8%) indicates earnings pressure compared to prior year.
- FII holdings decreased (-0.70%), showing reduced foreign investor confidence.
Company Positive News
- DII holdings increased (+0.60%), showing strong domestic institutional support.
- Sequential PAT growth from ₹58.8 Cr to ₹63.7 Cr indicates operational improvement.
Industry
- Industry PE at 45.2 is much lower than the stock’s P/E, suggesting sector trades at more reasonable valuations.
- KIMS trades at a premium but maintains moderate fundamentals with ROCE and ROE support.
Conclusion
⚖️ KIMS is currently in a bearish phase, trading below key moving averages with weak momentum indicators. Entry near ₹580–₹600 offers favorable risk-reward, while exits around ₹635–₹660 align with resistance. Sustained buying and a move above ₹638–₹659 would confirm reversal toward bullish momentum, while failure to hold support could extend bearish consolidation.