KPITTECH - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | KPITTECH | Market Cap | 27,155 Cr. | Current Price | 991 ₹ | High / Low | 1,475 ₹ |
| Stock P/E | 47.8 | Book Value | 71.2 ₹ | Dividend Yield | 0.86 % | ROCE | 34.4 % |
| ROE | 27.1 % | Face Value | 10.0 ₹ | DMA 50 | 1,159 ₹ | DMA 200 | 1,233 ₹ |
| Chg in FII Hold | -0.74 % | Chg in DII Hold | 1.46 % | PAT Qtr | 87.6 Cr. | PAT Prev Qtr | 119 Cr. |
| RSI | 21.2 | MACD | -39.8 | Volume | 25,03,713 | Avg Vol 1Wk | 18,36,435 |
| Low price | 963 ₹ | High price | 1,475 ₹ | PEG Ratio | 1.81 | Debt to equity | 0.07 |
| 52w Index | 5.49 % | Qtr Profit Var | -22.0 % | EPS | 19.4 ₹ | Industry PE | 23.9 |
📊 Chart Patterns & Trend: The stock is trading at ₹991, well below its 50 DMA (₹1,159) and 200 DMA (₹1,233), reflecting strong bearish pressure. Price action is near the 52-week low of ₹963, suggesting oversold conditions and possible consolidation before reversal attempts.
📈 Moving Averages: Current price is below both 50 DMA and 200 DMA, confirming downward momentum. A recovery above ₹1,159 would be the first bullish signal, while sustaining above ₹1,233 would confirm reversal.
📉 RSI: At 21.2, RSI is in deep oversold territory, indicating potential for a short-term rebound if buying interest emerges.
📉 MACD: Negative at -39.8, showing strong bearish momentum. Trend remains weak until MACD narrows toward zero.
📊 Bollinger Bands: Price is near the lower band, suggesting limited downside and potential mean reversion toward ₹1,050–₹1,100.
📊 Volume Trends: Current volume (25.0 Lakh) is higher than average weekly volume (18.3 Lakh), indicating active participation and possible accumulation at lower levels.
🎯 Entry Zone: ₹970–₹1,000 (near support and oversold RSI).
🎯 Exit Zone: ₹1,120–₹1,160 (near 50 DMA resistance).
📌 Trend Status: Bearish with signs of consolidation. A reversal may occur if RSI rebounds and price sustains above ₹1,100–₹1,160.
Positive
- Strong ROCE (34.4%) and ROE (27.1%) highlight excellent capital efficiency.
- Low debt-to-equity ratio (0.07) ensures financial stability.
- Dividend yield of 0.86% provides steady income for investors.
- EPS at ₹19.4 remains healthy compared to peers.
Limitation
- Stock P/E (47.8) is significantly higher than industry PE (23.9), indicating overvaluation.
- Price trading below both 50 DMA and 200 DMA confirms weak momentum.
- PEG ratio (1.81) suggests valuation is stretched relative to growth.
Company Negative News
- Quarterly PAT declined to ₹87.6 Cr from ₹119 Cr, showing earnings pressure.
- FII holdings decreased (-0.74%), reflecting reduced foreign investor confidence.
Company Positive News
- DII holdings increased (+1.46%), showing strong domestic institutional support.
- Volume activity above average suggests accumulation at lower levels.
Industry
- Industry PE at 23.9 is much lower than the stock’s P/E, suggesting sector trades at more reasonable valuations.
- Despite premium valuation, KPITTECH shows strong fundamentals with high ROCE and ROE.
Conclusion
⚖️ KPITTECH is currently in a bearish phase, trading below key moving averages with weak momentum indicators. However, oversold RSI and strong fundamentals provide potential for a short-term rebound. Entry near ₹970–₹1,000 offers favorable risk-reward, while exits around ₹1,120–₹1,160 align with resistance. Sustained buying and a move above ₹1,159–₹1,233 would confirm reversal toward bullish momentum.