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KIRLOSBROS - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.4

Last Updated Time : 02 Feb 26, 09:51 am

Technical Rating: 3.4

Stock Code KIRLOSBROS Market Cap 11,822 Cr. Current Price 1,490 ₹ High / Low 2,476 ₹
Stock P/E 50.3 Book Value 213 ₹ Dividend Yield 0.47 % ROCE 20.8 %
ROE 15.8 % Face Value 2.00 ₹ DMA 50 1,622 ₹ DMA 200 1,781 ₹
Chg in FII Hold 0.04 % Chg in DII Hold 0.42 % PAT Qtr 37.6 Cr. PAT Prev Qtr 47.0 Cr.
RSI 40.4 MACD -35.7 Volume 48,377 Avg Vol 1Wk 48,659
Low price 1,422 ₹ High price 2,476 ₹ PEG Ratio 1.32 Debt to equity 0.02
52w Index 6.46 % Qtr Profit Var -40.3 % EPS 30.6 ₹ Industry PE 36.0

📊 Chart Patterns & Trend: The stock is trading at ₹1,490, below both its 50 DMA (₹1,622) and 200 DMA (₹1,781), reflecting bearish pressure. Price action is close to its 52-week low of ₹1,422, 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 ₹1,622 would be the first bullish signal, while sustaining above ₹1,781 would confirm reversal.

📉 RSI: At 40.4, RSI is in the lower neutral zone, indicating weak momentum but not yet oversold. A move above 50 would signal strength.

📉 MACD: Negative at -35.7, 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 ₹1,550–₹1,600.

📊 Volume Trends: Current volume (48,377) is almost equal to average weekly volume (48,659), showing steady participation but no strong breakout signals.

🎯 Entry Zone: ₹1,450–₹1,490 (near support and lower Bollinger band).

🎯 Exit Zone: ₹1,600–₹1,650 (near resistance and 50 DMA).

📌 Trend Status: Bearish with consolidation signs. A reversal may occur if RSI rebounds and price sustains above ₹1,600–₹1,622.


Positive

  • Strong ROCE (20.8%) and ROE (15.8%) highlight efficient capital use.
  • Low debt-to-equity ratio (0.02) ensures financial stability.
  • EPS at ₹30.6 remains healthy compared to peers.
  • Dividend yield of 0.47% provides steady income for investors.

Limitation

  • Stock P/E (50.3) is significantly higher than industry PE (36.0), indicating overvaluation.
  • Price trading below both 50 DMA and 200 DMA confirms weak momentum.
  • PEG ratio (1.32) suggests valuation is stretched relative to growth.

Company Negative News

  • Quarterly PAT declined to ₹37.6 Cr from ₹47.0 Cr, showing earnings pressure.
  • Quarterly profit variation (-40.3%) indicates significant decline compared to prior year.

Company Positive News

  • FII holdings increased (+0.04%), showing foreign investor confidence.
  • DII holdings increased (+0.42%), reflecting domestic institutional support.

Industry

  • Industry PE at 36.0 is lower than the stock’s P/E, suggesting sector trades at more reasonable valuations.
  • KIRLOSBROS trades at a premium but maintains strong fundamentals with high ROCE and ROE.

Conclusion

⚖️ KIRLOSBROS is currently in a bearish phase, trading below key moving averages with weak momentum indicators. Entry near ₹1,450–₹1,490 offers favorable risk-reward, while exits around ₹1,600–₹1,650 align with resistance. Sustained buying and a move above ₹1,622–₹1,781 would confirm reversal toward bullish momentum, while failure to hold support could extend bearish consolidation.

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