KPRMILL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.0

📊 Chart Patterns & Trend: KPRMILL is trading below both its 50 DMA (1,033 ₹) and 200 DMA (1,036 ₹), reflecting bearish momentum. The price has corrected sharply from its 52-week high (1,395 ₹) and is consolidating near support levels around 960–980 ₹.

📈 Moving Averages: Current price (975 ₹) is under both DMAs, confirming weakness. A recovery above 1,030–1,050 ₹ would be required to regain momentum.

📉 RSI: At 31.9, RSI is near oversold territory, suggesting potential for a short-term rebound.

📉 MACD: Negative at -28.0, confirming bearish sentiment and lack of strong upward crossover.

📊 Bollinger Bands: Price is near the lower band, reflecting oversold conditions and possible mean reversion.

🔊 Volume Trends: Current volume (92,215) is significantly below average weekly volume (1,55,836), showing reduced participation and cautious sentiment.

🎯 Momentum Signals: Weak short-term signals with bearish bias. Oversold RSI and Bollinger positioning hint at a possible rebound if buying interest emerges.

💹 Entry Zone: 950–970 ₹ (near strong support levels).

💹 Exit Zone: 1,030–1,070 ₹ (resistance near DMA levels).

📌 Overall Trend: The stock is in a consolidation phase with bearish undertones, awaiting stronger volume for reversal.

Positive

• EPS of 17.1 ₹ with strong ROE of 17.6% and ROCE of 21.5%.
• Debt-to-equity ratio of 0.05 indicates a nearly debt-free balance sheet.
• DII holdings increased by 0.40%, showing domestic institutional confidence.

Limitation

• High P/E of 57.1 compared to industry average (19.1), suggesting overvaluation.
• PEG ratio of -14.3 highlights weak earnings growth relative to valuation.
• Dividend yield of 0.52% is modest for income-focused investors.
• Volume below average, limiting breakout potential.

Company Negative News

• Quarterly PAT declined to 132 Cr. from 162 Cr., showing earnings pressure.
• FII holdings decreased by 0.10%, reflecting reduced foreign investor confidence.

Company Positive News

• DII holdings increased, reflecting domestic support.
• Strong ROE and ROCE highlight operational efficiency despite recent weakness.

Industry

• Industry PE at 19.1 is much lower than KPRMILL’s P/E of 57.1, suggesting sector peers are more attractively priced.
• Textiles and apparel sector benefits from export demand but faces margin pressures due to input costs.

Conclusion

⚖️ KPRMILL is consolidating near support levels with weak momentum but oversold indicators suggest potential rebound. Entry around 950–970 ₹ offers favorable risk-reward, while exits near 1,030–1,070 ₹ are optimal. Long-term investors should be cautious due to high valuations and earnings pressure, while short-term traders may find opportunities in technical rebounds.