PIDILITIND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | PIDILITIND | Market Cap | 1,44,892 Cr. | Current Price | 1,424 ₹ | High / Low | 1,575 ₹ |
| Stock P/E | 64.9 | Book Value | 92.8 ₹ | Dividend Yield | 0.70 % | ROCE | 30.5 % |
| ROE | 23.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,468 ₹ | DMA 200 | 1,485 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.06 % | PAT Qtr | 586 Cr. | PAT Prev Qtr | 650 Cr. |
| RSI | 38.7 | MACD | -11.6 | Volume | 3,71,612 | Avg Vol 1Wk | 6,40,762 |
| Low price | 1,310 ₹ | High price | 1,575 ₹ | PEG Ratio | 3.18 | Debt to equity | 0.03 |
| 52w Index | 42.9 % | Qtr Profit Var | 8.10 % | EPS | 21.8 ₹ | Industry PE | 26.3 |
📊 Chart & Trend Analysis: PIDILITIND is trading at ₹1,424, below both its 50 DMA (₹1,468) and 200 DMA (₹1,485), reflecting a bearish undertone. RSI at 38.7 indicates weak momentum and near oversold territory, while MACD (-11.6) confirms negative bias. Bollinger Bands show price leaning toward the lower band, suggesting selling pressure. Current volume (3,71,612) is lower than the 1-week average (6,40,762), indicating reduced participation.
📈 Momentum Signals: Short-term momentum remains weak, with RSI below 40 and MACD negative. A reversal signal may emerge if RSI climbs above 45 and price sustains above ₹1,470.
💡 Entry Zone: ₹1,310–₹1,350 (support near 52-week low)
🚪 Exit Zone: ₹1,460–₹1,500 (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
- Strong ROCE (30.5%) and ROE (23.2%) indicate efficient operations.
- EPS at ₹21.8 reflects solid earnings capacity.
- Dividend yield of 0.70% provides shareholder returns.
- Debt-to-equity ratio at 0.03 shows negligible leverage.
- 52-week index return at 42.9% highlights long-term investor confidence.
Limitation
- Price trading below both 50 DMA and 200 DMA indicates weak technical strength.
- Stock P/E at 64.9 is significantly higher than industry average (26.3), making valuations stretched.
- PEG ratio at 3.18 suggests expensive growth-adjusted valuation.
- Volume participation is lower than average, limiting momentum strength.
Company Negative News
- Decline in FII holding (-0.07%) signals reduced foreign investor confidence.
- Quarterly PAT declined to ₹586 Cr. vs ₹650 Cr., showing earnings pressure.
Company Positive News
- Increase in DII holding (+0.06%) shows domestic institutional support.
- Quarterly profit variation at 8.10% highlights operational resilience despite decline.
Industry
- Industry PE at 26.3 is much lower than PIDILITIND’s, highlighting sector competitiveness.
- Chemicals and adhesives sector demand remains structurally strong, supported by construction and industrial growth.
Conclusion
⚖️ PIDILITIND is consolidating with bearish bias, trading below key moving averages and showing weak momentum. While fundamentals remain strong with high ROCE, ROE, and negligible debt, stretched valuations and weak technical signals limit upside. Traders may consider entry near ₹1,310–₹1,350 with exit targets around ₹1,460–₹1,500. Sustained reversal requires RSI recovery above 45 and price stability above 50 DMA.