KIRLOSBROS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | KIRLOSBROS | Market Cap | 12,469 Cr. | Current Price | 1,572 ₹ | High / Low | 2,476 ₹ |
| Stock P/E | 47.4 | Book Value | 213 ₹ | Dividend Yield | 0.44 % | ROCE | 20.8 % |
| ROE | 15.8 % | Face Value | 2.00 ₹ | DMA 50 | 1,588 ₹ | DMA 200 | 1,726 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.42 % | PAT Qtr | 78.2 Cr. | PAT Prev Qtr | 37.6 Cr. |
| RSI | 51.0 | MACD | -10.4 | Volume | 81,736 | Avg Vol 1Wk | 65,404 |
| Low price | 1,406 ₹ | High price | 2,476 ₹ | PEG Ratio | 1.25 | Debt to equity | 0.02 |
| 52w Index | 15.6 % | Qtr Profit Var | 55.4 % | EPS | 31.7 ₹ | Industry PE | 35.8 |
📈 Chart & Trend: The stock is trading slightly below its 50 DMA (1,588 ₹) and 200 DMA (1,726 ₹), showing short-term weakness and medium-term pressure. Current price (1,572 ₹) is closer to its 52-week low (1,406 ₹) than the high (2,476 ₹), reflecting consolidation after a steep correction.
📊 Momentum Indicators: RSI at 51.0 indicates neutral momentum. MACD at -10.4 shows mild bearish bias. Bollinger Bands suggest price stabilizing near the mid-band, consistent with consolidation.
🔎 Volume Trends: Current volume (81,736) is higher than the 1-week average (65,404), showing increased participation, possibly accumulation at current levels.
💡 Entry Zone: 1,540–1,570 ₹ (near support at 1,406 ₹, offering tactical entry)
💡 Exit Zone: 1,600–1,650 ₹ (resistance near 1,588–1,726 ₹, aligning with DMA levels)
📌 Trend Status: The stock is consolidating with mild bearish undertones, awaiting breakout above 1,726 ₹ for trend reversal.
Positive
- Strong ROCE (20.8%) and ROE (15.8%) highlight efficient capital use.
- Low debt-to-equity (0.02) indicates a very healthy balance sheet.
- Quarterly PAT growth (37.6 Cr → 78.2 Cr) shows strong earnings momentum.
- EPS of 31.7 ₹ reflects solid profitability.
Limitation
- Stock trading below both 50 DMA and 200 DMA shows weak technical strength.
- High P/E (47.4) compared to industry P/E (35.8), making valuation expensive.
- PEG ratio (1.25) suggests growth is slightly overpriced relative to earnings.
Company Negative News
- Stock corrected from 2,476 ₹ to 1,572 ₹, eroding investor wealth.
- MACD negative indicates weak short-term momentum.
Company Positive News
- FII holding increased slightly (+0.04%) and DII holding increased (+0.42%), showing institutional support.
- Quarterly profit growth (+55.4%) highlights strong operational performance.
Industry
- Industry P/E (35.8) is lower than company P/E (47.4), suggesting sector peers trade at more reasonable valuations.
- 52-week industry index return of 15.6% shows moderate sector momentum.
Conclusion
⚖️ Kirloskar Brothers is consolidating with mild bearish undertones, trading below key moving averages. Fundamentals like ROCE, ROE, and low debt are supportive, but valuation is stretched. Tactical strategy: accumulate near 1,540–1,570 ₹ with strict stop-loss below 1,406 ₹, and book profits around 1,600–1,650 ₹. Sustained recovery requires crossing 1,588–1,726 ₹ resistance zones.
Would you like me to extend this into a peer benchmarking overlay against other industrial engineering and pump manufacturers? That would help clarify whether Kirloskar Brothers’ valuation premium is justified compared to sector peers.