KSB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | KSB | Market Cap | 11,944 Cr. | Current Price | 687 ₹ | High / Low | 918 ₹ |
| Stock P/E | 46.6 | Book Value | 84.7 ₹ | Dividend Yield | 0.58 % | ROCE | 24.2 % |
| ROE | 18.0 % | Face Value | 2.00 ₹ | DMA 50 | 737 ₹ | DMA 200 | 774 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.38 % | PAT Qtr | 65.0 Cr. | PAT Prev Qtr | 72.7 Cr. |
| RSI | 40.3 | MACD | -16.9 | Volume | 36,001 | Avg Vol 1Wk | 1,17,410 |
| Low price | 582 ₹ | High price | 918 ₹ | PEG Ratio | 2.61 | Debt to equity | 0.00 |
| 52w Index | 31.1 % | Qtr Profit Var | 9.61 % | EPS | 14.7 ₹ | Industry PE | 36.0 |
📊 Chart Patterns & Trend: The stock is trading at ₹687, below both its 50 DMA (₹737) and 200 DMA (₹774), reflecting bearish pressure. Price action is consolidating near support levels around ₹680–₹690, with potential rebound if momentum improves.
📈 Moving Averages: Current price is below both 50 DMA and 200 DMA, confirming weak momentum. A breakout above ₹737 would be the first bullish signal, while sustaining above ₹774 would confirm reversal.
📉 RSI: At 40.3, RSI is in the lower neutral zone, suggesting weak momentum but not oversold. A move above 50 would indicate strengthening momentum.
📉 MACD: Negative at -16.9, showing 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 ₹710–₹730.
📊 Volume Trends: Current volume (36,001) is significantly lower than average weekly volume (1.17 Lakh), showing reduced participation and lack of strong breakout signals.
🎯 Entry Zone: ₹675–₹690 (near support and lower Bollinger band).
🎯 Exit Zone: ₹730–₹760 (near 50 DMA and resistance zone).
📌 Trend Status: Consolidating with bearish bias. A reversal may occur if price sustains above ₹737–₹774.
Positive
- Strong ROCE (24.2%) and ROE (18%) highlight efficient capital use.
- Debt-to-equity ratio of 0.00 ensures financial stability.
- Dividend yield of 0.58% provides steady income for investors.
- EPS at ₹14.7 remains healthy compared to peers.
Limitation
- Stock P/E (46.6) is higher than industry PE (36.0), indicating overvaluation.
- Price trading below both 50 DMA and 200 DMA confirms weak momentum.
- PEG ratio (2.61) suggests valuation is stretched relative to growth.
Company Negative News
- Quarterly PAT declined to ₹65 Cr from ₹72.7 Cr, showing earnings pressure.
- FII holdings decreased (-0.06%), reflecting reduced foreign investor confidence.
Company Positive News
- DII holdings increased (+0.38%), showing domestic institutional support.
- Quarterly profit variation (+9.61%) indicates improvement compared to prior year.
Industry
- Industry PE at 36.0 is lower than the stock’s P/E, suggesting sector trades at more reasonable valuations.
- KSB trades at a premium but maintains strong fundamentals with high ROCE and ROE.
Conclusion
⚖️ KSB is consolidating near support levels with weak momentum indicators (RSI and MACD). Entry near ₹675–₹690 offers favorable risk-reward, while exits around ₹730–₹760 align with resistance. Sustained buying and a move above ₹737–₹774 would confirm reversal toward bullish momentum, while failure to hold support could extend bearish consolidation.