POONAWALLA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | POONAWALLA | Market Cap | 31,724 Cr. | Current Price | 390 ₹ | High / Low | 570 ₹ |
| Stock P/E | 90.8 | Book Value | 121 ₹ | Dividend Yield | 0.00 % | ROCE | 4.77 % |
| ROE | -1.29 % | Face Value | 2.00 ₹ | DMA 50 | 452 ₹ | DMA 200 | 443 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | -0.06 % | PAT Qtr | 150 Cr. | PAT Prev Qtr | 74.2 Cr. |
| RSI | 27.0 | MACD | -18.5 | Volume | 9,87,057 | Avg Vol 1Wk | 13,57,656 |
| Low price | 267 ₹ | High price | 570 ₹ | Debt to equity | 3.66 | 52w Index | 40.5 % |
| Qtr Profit Var | 702 % | EPS | 4.37 ₹ | Industry PE | 18.9 |
📊 Chart & Trend Analysis: POONAWALLA is trading at 390 ₹, well below its 50 DMA (452 ₹) and 200 DMA (443 ₹), indicating strong bearish pressure. RSI at 27.0 signals oversold conditions, while MACD at -18.5 confirms negative momentum. Bollinger Bands suggest price hugging the lower band, pointing to weakness but also potential for a technical rebound if buying interest emerges.
📈 Momentum Signals: Short-term momentum remains weak with volume (9,87,057) below the 1-week average (13,57,656). Oversold RSI may trigger a relief rally, but sustained recovery requires stronger volume and price action above 200 DMA.
🎯 Entry Zone: 370–385 ₹ (near support and oversold RSI)
🚪 Exit Zone: 440–455 ₹ (resistance near 200 DMA and 50 DMA)
📌 Trend Status: Currently in a bearish trend with signs of consolidation. A reversal is possible if RSI rebounds and price closes above 200 DMA.
Positive
- Quarterly PAT surged to 150 Cr. from 74.2 Cr., showing strong growth momentum.
- FII holdings increased slightly (+0.05%), indicating marginal foreign interest.
- 52-week low at 267 ₹ provides margin of safety for long-term investors.
Limitation
- High P/E of 90.8 compared to industry PE of 18.9, making valuation expensive.
- ROCE at 4.77% and ROE at -1.29% reflect weak capital efficiency.
- Debt-to-equity ratio of 3.66 indicates high leverage risk.
Company Negative News
- Stock trading below both 50 DMA and 200 DMA, signaling technical weakness.
- DII holdings reduced (-0.06%), showing domestic investor caution.
Company Positive News
- Quarterly profit variation of +702% highlights strong turnaround performance.
- EPS growth, though small (4.37 ₹), shows improving profitability trend.
Industry
- Industry PE at 18.9 is far lower than POONAWALLA’s, suggesting sector peers are more reasonably valued.
- Financial services sector remains in focus due to credit demand and NBFC growth opportunities.
Conclusion
⚖️ POONAWALLA is technically weak, trading below key moving averages with oversold RSI. Entry near 370–385 ₹ offers tactical opportunity, while exits around 440–455 ₹ align with resistance. Despite strong quarterly profit growth, high leverage and expensive valuation warrant caution. Short-term traders may look for a rebound, but long-term investors should wait for sustained improvement in fundamentals and technical confirmation.