PATANJALI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | PATANJALI | Market Cap | 53,880 Cr. | Current Price | 496 ₹ | High / Low | 671 ₹ |
| Stock P/E | 37.8 | Book Value | 111 ₹ | Dividend Yield | 0.67 % | ROCE | 15.6 % |
| ROE | 12.1 % | Face Value | 2.00 ₹ | DMA 50 | 541 ₹ | DMA 200 | 571 ₹ |
| Chg in FII Hold | -1.42 % | Chg in DII Hold | 1.19 % | PAT Qtr | 517 Cr. | PAT Prev Qtr | 180 Cr. |
| RSI | 29.2 | MACD | -14.9 | Volume | 8,52,969 | Avg Vol 1Wk | 38,15,856 |
| Low price | 484 ₹ | High price | 671 ₹ | PEG Ratio | 2.17 | Debt to equity | 0.24 |
| 52w Index | 6.29 % | Qtr Profit Var | 67.2 % | EPS | 13.1 ₹ | Industry PE | 23.5 |
📊 Chart & Trend Analysis: PATANJALI is trading at ₹496, below both its 50 DMA (₹541) and 200 DMA (₹571), reflecting a bearish structure. RSI at 29.2 indicates oversold conditions, while MACD (-14.9) confirms negative momentum. Bollinger Bands show price hugging the lower band, suggesting persistent selling pressure. Current volume (8,52,969) is significantly lower than the 1-week average (38,15,856), indicating reduced participation.
📈 Momentum Signals: Short-term momentum remains weak, with RSI in oversold territory and MACD negative. A reversal signal may emerge if RSI climbs above 35 and price sustains above ₹520.
💡 Entry Zone: ₹484–₹500 (support near 52-week low)
🚪 Exit Zone: ₹540–₹570 (resistance near 50 DMA & 200 DMA)
🔎 Trend Status: The stock is consolidating with bearish bias, showing potential reversal only if support holds and RSI recovers.
Positive
- Quarterly PAT surged to ₹517 Cr. vs ₹180 Cr., showing 67.2% growth.
- EPS at ₹13.1 reflects improving profitability.
- ROCE (15.6%) and ROE (12.1%) indicate moderate efficiency.
- Dividend yield of 0.67% provides shareholder returns.
- Debt-to-equity ratio at 0.24 shows manageable leverage.
Limitation
- Price trading below both 50 DMA and 200 DMA indicates weak technical strength.
- Stock P/E at 37.8 is higher than industry average (23.5), making valuations stretched.
- PEG ratio at 2.17 suggests expensive growth-adjusted valuation.
- 52-week index return at 6.29% is relatively muted compared to peers.
Company Negative News
- Decline in FII holding (-1.42%) signals reduced foreign investor confidence.
- Volume participation is significantly lower than average, limiting momentum.
Company Positive News
- Quarterly profit growth highlights strong operational improvement.
- Increase in DII holding (+1.19%) shows domestic institutional support.
Industry
- Industry PE at 23.5 is lower than PATANJALI’s, highlighting sector competitiveness.
- FMCG sector demand remains structurally strong, supported by consumer staples and brand positioning.
Conclusion
⚖️ PATANJALI is consolidating with bearish bias, trading below key moving averages and showing weak momentum. While fundamentals show strong profit growth and moderate efficiency, stretched valuations and weak technical signals limit upside. Traders may consider entry near ₹484–₹500 with exit targets around ₹540–₹570. Sustained reversal requires RSI recovery above 35 and price stability above 50 DMA.