POONAWALLA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | POONAWALLA | Market Cap | 36,724 Cr. | Current Price | 417 ₹ | High / Low | 570 ₹ |
| Stock P/E | 105 | Book Value | 121 ₹ | Dividend Yield | 0.00 % | ROCE | 4.77 % |
| ROE | -1.29 % | Face Value | 2.00 ₹ | DMA 50 | 420 ₹ | DMA 200 | 434 ₹ |
| Chg in FII Hold | 0.64 % | Chg in DII Hold | 4.45 % | PAT Qtr | 150 Cr. | PAT Prev Qtr | 74.2 Cr. |
| RSI | 51.9 | MACD | 2.04 | Volume | 10,12,169 | Avg Vol 1Wk | 18,13,616 |
| Low price | 361 ₹ | High price | 570 ₹ | Debt to equity | 3.66 | 52w Index | 26.8 % |
| Qtr Profit Var | 702 % | EPS | 4.37 ₹ | Industry PE | 18.2 |
Chart & Trend Analysis:
POONAWALLA is trading at ₹417, slightly below its 50 DMA (₹420) and 200 DMA (₹434), showing weakness near key averages. RSI at 51.9 indicates neutral momentum. MACD at 2.04 has just turned positive, suggesting mild bullish crossover. Bollinger Bands show price near the mid-band, reflecting indecision. Volume (10,12,169) is lower than the 1-week average (18,13,616), indicating reduced participation.
Momentum Signals:
- Short-term momentum is weak; price struggling to hold above DMA levels.
- Entry Zone: ₹360–₹390 (strong support zone).
- Exit Zone: ₹430–₹440 (resistance near DMA cluster).
- Trend Status: Consolidating with mild bullish bias; not yet trending strongly.
Positive
- Quarterly PAT surged 702% (150 Cr vs 74.2 Cr).
- FII (+0.64%) and DII (+4.45%) inflows show institutional support.
- 52-week gain of 26.8% indicates moderate investor interest.
Limitation
- Extremely high P/E (105) vs industry average (18.2).
- Negative ROE (-1.29%) and weak ROCE (4.77%).
- High debt-to-equity ratio (3.66) raises leverage concerns.
- No dividend yield, limiting income appeal.
Company Negative News
- Fundamentals remain weak despite profit surge.
- High leverage and poor return ratios may cap long-term growth.
Company Positive News
- Strong quarterly earnings momentum with PAT growth.
- Institutional investors increasing stake.
Industry
- Industry P/E at 18.2 highlights POONAWALLA’s steep premium valuation.
- Sector growth supported by financial services expansion, but valuations remain sensitive.
Conclusion
POONAWALLA shows short-term earnings momentum but weak fundamentals and high leverage make it risky for long-term investment. Best strategy is to accumulate near ₹360–₹390 support and exit around ₹430–₹440 resistance. New investors should wait for correction before entry.