KIRLOSBROS - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.2

📊 Chart Patterns & Trend: KIRLOSBROS is trading below both its 50 DMA (1,748 ₹) and 200 DMA (1,850 ₹), showing weakness. Price action suggests a reversal from highs and the stock is currently in a corrective phase.

📈 Moving Averages: Current price (1,631 ₹) is below both 50 DMA and 200 DMA, confirming bearish sentiment. Resistance lies around 1,748–1,850 ₹.

📉 RSI: At 41.2, RSI is in neutral-to-weak territory, suggesting limited momentum and potential downside before oversold levels.

📉 MACD: Negative at -41.5, confirming bearish momentum and lack of strong buying signals.

📊 Bollinger Bands: Price is near the lower band, signaling oversold conditions but also weak buying interest.

📉 Volume Trends: Current volume (44,150) is significantly below average weekly volume (1,39,486), showing lack of participation and weak conviction in recent moves.

🎯 Entry Zone: 1,550–1,600 ₹ (near support levels).

🎯 Exit Zone: 1,740–1,850 ₹ (resistance at DMA levels).

⚡ Momentum: Weak, with consolidation and bearish bias.

Positive

• Strong ROCE (20.8%) and ROE (15.8%) indicate efficient capital and equity utilization.
• Low debt-to-equity ratio (0.02) ensures financial stability.
• EPS at 30.6 ₹ supports earnings visibility.
• DII holdings increased slightly (+0.11%), showing domestic institutional support.

Limitation

• Stock trading below both 50 DMA and 200 DMA, signaling weakness.
• RSI at 41.2 shows weak momentum, not yet oversold.
• MACD negative, confirming bearish trend continuation.
• High P/E ratio (55.2) compared to industry average (39.1), indicating overvaluation.
• Quarterly PAT dropped (37.6 Cr vs 47.0 Cr), showing earnings pressure.

Company Negative News

• Quarterly PAT declined by -40.3%, reflecting operational challenges.
• FII holdings decreased (-0.26%), showing reduced foreign investor confidence.
• Stock corrected sharply from 52-week high (2,476 ₹ to 1,631 ₹).

Company Positive News

• Strong ROCE and ROE metrics highlight operational efficiency.
• Low debt levels provide financial stability.

Industry

• Industry PE at 39.1 is lower than KIRLOSBROS’s PE (55.2), showing premium valuation.
• Engineering and industrial sector demand remains cyclical but supported by infrastructure and manufacturing growth.

Conclusion

⚖️ KIRLOSBROS is currently in a reversal phase with bearish bias. Short-term momentum is weak, with entry opportunities near 1,550–1,600 ₹ and resistance around 1,740–1,850 ₹. Fundamentally supported by strong ROCE/ROE and low debt, but technically cautious due to weak RSI, MACD, and moving averages. Best suited for long-term investors; traders should wait for reversal confirmation before entry.