KSB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | KSB | Market Cap | 14,139 Cr. | Current Price | 811 ₹ | High / Low | 918 ₹ |
| Stock P/E | 50.0 | Book Value | 92.7 ₹ | Dividend Yield | 0.49 % | ROCE | 25.0 % |
| ROE | 18.6 % | Face Value | 2.00 ₹ | DMA 50 | 742 ₹ | DMA 200 | 764 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.38 % | PAT Qtr | 94.0 Cr. | PAT Prev Qtr | 65.0 Cr. |
| RSI | 68.0 | MACD | 13.7 | Volume | 6,77,592 | Avg Vol 1Wk | 2,26,113 |
| Low price | 648 ₹ | High price | 918 ₹ | PEG Ratio | 3.01 | Debt to equity | 0.00 |
| 52w Index | 60.5 % | Qtr Profit Var | 34.5 % | EPS | 15.2 ₹ | Industry PE | 35.8 |
📈 Chart & Trend: The stock is trading above both its 50 DMA (742 ₹) and 200 DMA (764 ₹), showing strong technical strength. Current price (811 ₹) is closer to its 52-week high (918 ₹) than the low (648 ₹), reflecting bullish sentiment.
📊 Momentum Indicators: RSI at 68.0 indicates strong momentum, nearing overbought territory. MACD at 13.7 confirms bullish bias. Bollinger Bands show price moving toward the upper band, consistent with an uptrend.
🔎 Volume Trends: Current volume (6.77 lakh) is significantly higher than the 1-week average (2.26 lakh), showing strong participation and buying interest.
💡 Entry Zone: 780–800 ₹ (near support at 764 ₹, offering tactical entry)
💡 Exit Zone: 880–900 ₹ (resistance near 918 ₹, aligning with 52-week high)
📌 Trend Status: The stock is trending upward with strong bullish momentum.
Positive
- Strong ROCE (25%) and ROE (18.6%) highlight efficient capital use.
- Debt-free balance sheet (0.00 debt-to-equity) provides financial stability.
- Quarterly PAT growth (65 Cr → 94 Cr) shows strong earnings momentum.
- EPS of 15.2 ₹ reflects solid profitability.
Limitation
- High P/E (50.0) compared to industry P/E (35.8), making valuation expensive.
- PEG ratio (3.01) suggests growth is overpriced relative to earnings.
- RSI nearing overbought levels (68) could trigger short-term profit booking.
- FII holding decreased (-0.06%), showing reduced foreign investor confidence.
Company Negative News
- Valuation stretched compared to peers, limiting margin of safety.
- High PEG ratio indicates earnings growth may not justify current price levels.
Company Positive News
- DII holding increased (+0.38%), showing domestic institutional support.
- Quarterly profit growth (+34.5%) highlights strong operational performance.
Industry
- Industry P/E (35.8) is lower than company P/E (50.0), suggesting sector peers trade at more reasonable valuations.
- 52-week industry index return of 60.5% shows strong sector momentum.
Conclusion
⚖️ KSB is trending upward with strong bullish momentum, supported by earnings growth and volume strength. Fundamentals like ROCE, ROE, and debt-free status are positive, but valuation is stretched. Tactical strategy: accumulate near 780–800 ₹ with strict stop-loss below 764 ₹, and book profits around 880–900 ₹. Sustained rally requires breaking past 918 ₹ resistance.
Would you like me to extend this into a peer benchmarking overlay against other industrial pump and engineering companies? That would highlight whether KSB’s premium valuation is justified compared to sector peers.