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KPRMILL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

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

Technical Rating: 3.6

Stock Code KPRMILL Market Cap 30,402 Cr. Current Price 888 ₹ High / Low 1,395 ₹
Stock P/E 52.1 Book Value 119 ₹ Dividend Yield 0.56 % ROCE 21.5 %
ROE 17.6 % Face Value 1.00 ₹ DMA 50 929 ₹ DMA 200 998 ₹
Chg in FII Hold 0.04 % Chg in DII Hold -0.20 % PAT Qtr 132 Cr. PAT Prev Qtr 162 Cr.
RSI 49.0 MACD -16.9 Volume 10,41,687 Avg Vol 1Wk 15,93,589
Low price 756 ₹ High price 1,395 ₹ PEG Ratio -13.0 Debt to equity 0.05
52w Index 20.7 % Qtr Profit Var -37.1 % EPS 17.1 ₹ Industry PE 17.6

📊 Chart Patterns & Trend: The stock is trading at ₹888, below both its 50 DMA (₹929) and 200 DMA (₹998), reflecting bearish pressure. Price action is consolidating near support levels around ₹880–₹890, with potential reversal if momentum strengthens.

📈 Moving Averages: Current price is below both 50 DMA and 200 DMA, confirming weak momentum. A breakout above ₹929 would be the first bullish signal, while sustaining above ₹998 would confirm trend reversal.

📉 RSI: At 49, RSI is neutral, suggesting sideways consolidation. A move above 55 would indicate strengthening momentum.

📉 MACD: Negative at -16.9, showing bearish momentum. Trend remains weak unless MACD narrows toward zero.

📊 Bollinger Bands: Price is near the lower band, suggesting limited downside and potential mean reversion toward ₹920–₹940.

📊 Volume Trends: Current volume (10.4 Lakh) is lower than average weekly volume (15.9 Lakh), showing reduced participation and lack of strong breakout signals.

🎯 Entry Zone: ₹870–₹890 (near support and lower Bollinger band).

🎯 Exit Zone: ₹940–₹970 (near 50 DMA and resistance zone).

📌 Trend Status: Consolidating with mild bearish bias. A reversal may occur if price sustains above ₹929–₹940.


Positive

  • Strong ROCE (21.5%) and ROE (17.6%) highlight efficient capital use.
  • Low debt-to-equity ratio (0.05) ensures financial stability.
  • Dividend yield of 0.56% provides steady income for investors.
  • EPS at ₹17.1 remains strong compared to peers.

Limitation

  • Stock P/E (52.1) is significantly higher than industry PE (17.6), indicating overvaluation.
  • Price trading below both 50 DMA and 200 DMA confirms weak momentum.
  • PEG ratio (-13.0) is negative, suggesting poor valuation relative to growth.

Company Negative News

  • Quarterly PAT declined to ₹132 Cr from ₹162 Cr, showing earnings pressure.
  • DII holdings decreased (-0.20%), reflecting reduced domestic institutional confidence.

Company Positive News

  • FII holdings increased (+0.04%), showing foreign investor interest.
  • Strong fundamentals with consistent ROCE and ROE performance.

Industry

  • Industry PE at 17.6 is much lower than the stock’s P/E, suggesting sector trades at more reasonable valuations.
  • KPRMILL trades at a premium, but strong fundamentals support long-term potential.

Conclusion

⚖️ KPRMILL is consolidating near support levels with neutral RSI and weak MACD. Entry near ₹870–₹890 offers favorable risk-reward, while exits around ₹940–₹970 align with resistance. Sustained buying and a move above ₹929–₹940 would confirm reversal toward bullish momentum, while failure to hold support could extend bearish consolidation.

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