KNRCON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | KNRCON | Market Cap | 4,019 Cr. | Current Price | 143 ₹ | High / Low | 328 ₹ |
| Stock P/E | 11.9 | Book Value | 143 ₹ | Dividend Yield | 0.17 % | ROCE | 27.4 % |
| ROE | 20.5 % | Face Value | 2.00 ₹ | DMA 50 | 160 ₹ | DMA 200 | 198 ₹ |
| Chg in FII Hold | -0.14 % | Chg in DII Hold | -1.49 % | PAT Qtr | 27.9 Cr. | PAT Prev Qtr | 51.3 Cr. |
| RSI | 37.0 | MACD | -4.47 | Volume | 11,34,907 | Avg Vol 1Wk | 11,01,386 |
| Low price | 140 ₹ | High price | 328 ₹ | PEG Ratio | 0.46 | Debt to equity | 0.02 |
| 52w Index | 1.72 % | Qtr Profit Var | -91.9 % | EPS | 12.0 ₹ | Industry PE | 17.6 |
📊 Chart Patterns: The stock is trading below both 50 DMA (160 ₹) and 200 DMA (198 ₹), showing strong weakness. Current price (143 ₹) is near its 52-week low (140 ₹), reflecting bearish sentiment.
📈 Moving Averages: Price below DMA 50 and DMA 200 confirms bearish bias. Support levels visible near 140–145 ₹, resistance around 160–170 ₹.
📉 RSI (37.0): Weak momentum, close to oversold territory, suggesting limited downside but no strong reversal yet.
📊 MACD (-4.47): Negative crossover, confirming bearish momentum in the short term.
📊 Bollinger Bands: Price near lower band, indicating oversold conditions and possible short-term bounce.
📊 Volume Trends: Current volume (11,34,907) is slightly higher than 1-week average (11,01,386), showing stable participation but mostly on the selling side.
🎯 Momentum Signals: Weak momentum with possible short-term rebound if price sustains above 145 ₹.
💡 Entry Zone: 140–145 ₹ (near support).
🚪 Exit Zone: 160–170 ₹ (resistance zone before 180 ₹).
📌 Trend Status: Stock is reversing from highs and currently in a bearish consolidation phase. Sustained move above 160 ₹ may signal recovery, while a break below 140 ₹ could extend downside.
Positive
- 📈 Strong ROCE (27.4%) and ROE (20.5%) indicate efficient capital usage.
- 📊 EPS (12.0 ₹) supports valuation strength.
- ⚖️ Debt-to-equity ratio at 0.02 indicates strong balance sheet stability.
- 📊 PEG ratio (0.46) suggests fair valuation relative to growth.
Limitation
- ⚠️ Current price near 52-week low, showing technical weakness.
- ⚠️ RSI and MACD indicate bearish momentum.
- ⚠️ Price below both 50 DMA and 200 DMA.
Company Negative News
- 📉 Quarterly PAT declined sharply to 27.9 Cr. from 51.3 Cr.
- 📉 FII holdings reduced (-0.14%) and DII holdings reduced (-1.49%), reflecting weaker investor sentiment.
- 📉 Quarterly profit variance (-91.9%) shows severe earnings pressure.
Company Positive News
- 📈 Strong ROCE and ROE performance despite earnings decline.
- 📊 Dividend payout maintained with consistent yield (0.17%).
Industry
- 🏗️ Industry P/E at 17.6, higher than KNRCON’s P/E (11.9), suggesting undervaluation.
- 🌍 Infrastructure and construction sector supported by government spending and project pipeline.
Conclusion
📌 KNRCON is consolidating near its 52-week low with weak RSI and negative MACD signals. Entry around 140–145 ₹ offers limited risk, while resistance lies at 160–170 ₹. The stock appears undervalued compared to industry peers, but sharp earnings decline and weak investor sentiment make it more suitable for cautious short-term trades on rebounds rather than long-term investment.