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PCBL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

Last Updated Time : 19 Mar 26, 08:58 pm

Technical Rating: 3.6

Stock Code PCBL Market Cap 10,077 Cr. Current Price 256 ₹ High / Low 444 ₹
Stock P/E 34.5 Book Value 99.0 ₹ Dividend Yield 2.34 % ROCE 13.2 %
ROE 12.8 % Face Value 1.00 ₹ DMA 50 288 ₹ DMA 200 333 ₹
Chg in FII Hold -0.40 % Chg in DII Hold -0.57 % PAT Qtr 44.7 Cr. PAT Prev Qtr 59.6 Cr.
RSI 37.2 MACD -10.9 Volume 15,53,819 Avg Vol 1Wk 13,53,714
Low price 245 ₹ High price 444 ₹ PEG Ratio 21.0 Debt to equity 0.77
52w Index 5.48 % Qtr Profit Var -59.8 % EPS 7.47 ₹ Industry PE 35.6

📊 Chart & Trend Analysis: PCBL is trading at ₹256, below both its 50 DMA (₹288) and 200 DMA (₹333), reflecting strong bearish momentum. RSI at 37.2 indicates the stock is approaching oversold territory. MACD at -10.9 confirms bearish divergence. Bollinger Bands show price leaning toward the lower band, with support near ₹245 and resistance around ₹280–₹300.

📈 Momentum & Volume: Current volume (15,53,819) is slightly above the 1-week average (13,53,714), showing mild participation. Momentum remains weak, with no strong reversal signals yet.

🔑 Entry & Exit Zones:

- Optimal Entry: ₹245–₹255 (near support)

- Resistance Levels: ₹280 (short-term), ₹300 (medium-term)

- Exit Zone: ₹275–₹295 if momentum improves

📌 Trend Status: The stock is currently reversing downward with bearish bias, struggling to hold above support zones.


Positive

  • ROCE at 13.2% and ROE at 12.8% show moderate efficiency.
  • Dividend yield of 2.34% provides steady income for investors.
  • EPS of ₹7.47 reflects earnings visibility.

Limitation

  • Quarterly PAT declined to ₹44.7 Cr. vs ₹59.6 Cr. (-59.8%).
  • High debt-to-equity ratio (0.77) increases financial risk.
  • PEG ratio of 21.0 suggests overvaluation relative to growth.
  • Trading below both 50 DMA and 200 DMA reflects weak technical strength.

Company Negative News

  • Sharp quarterly profit decline (-59.8%) impacts sentiment.
  • FII holding decreased (-0.40%) and DII holding decreased (-0.57%), showing reduced institutional confidence.

Company Positive News

  • Dividend yield of 2.34% continues to provide investor returns.
  • Moderate ROCE/ROE highlight operational efficiency despite profit decline.

Industry

  • Industry PE at 35.6 is slightly higher than PCBL’s PE of 34.5, suggesting fair valuation relative to peers.
  • Chemicals and carbon black sector remains cyclical, influenced by raw material costs and demand from tire/auto industries.

Conclusion

⚖️ PCBL shows moderate fundamentals with decent ROCE/ROE and dividend yield, but technicals remain weak with bearish momentum and profit decline. The stock is reversing downward near support levels. A cautious entry around ₹245–₹255 may be considered with exit targets near ₹275–₹295 if momentum improves. Long-term investors should monitor debt levels and profitability trends before committing heavily.

Would you like me to extend this into a peer benchmarking overlay comparing PCBL against other chemical/carbon black players (like Himadri, Phillips Carbon peers, and Graphite India) to highlight relative strength and margin-of-safety clarity?

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