POONAWALLA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.2

📊 Technical Analysis Summary

• Trend Status: Reversing from uptrend
• Current Price: ₹482
• RSI (42.5): Neutral to weak — momentum fading
• MACD (-0.78): Bearish crossover — downward pressure
• Volume: Significantly below average (12.1L vs 23.9L) — declining interest
• DMA 50/200: Price below 50 DMA (₹486) but above 200 DMA (₹430) — mixed signals
• Bollinger Bands: Price near lower band — potential support zone

📈 Entry & Exit Zones

• Support Levels: ₹470 / ₹455 / ₹430
• Resistance Levels: ₹500 / ₹525 / ₹550
• Optimal Entry: ₹470–₹480 (on dip near support)
• Exit Target: ₹525–₹550 (if momentum recovers)

✅ Positive

• Price above 200 DMA — long-term support intact
• Quarterly PAT improved from ₹62.6 Cr to ₹74.2 Cr — 116% growth
• 52-week performance up 70.7% — strong historical trend

⚠️ Limitation

• MACD and RSI show weak momentum — bearish bias
• High P/E (180) — significantly overvalued vs industry
• Volume well below average — low conviction

📉 Company Negative News

• ROCE (4.77%) and ROE (-1.29%) — poor capital efficiency
• FII holding declined by 0.20% — foreign investor caution
• Debt-to-equity ratio of 3.66 — high leverage risk

📈 Company Positive News

• DII holding increased by 0.02% — marginal domestic support
• EPS of ₹2.76 — earnings recovery underway

🏢 Industry

• POONAWALLA operates in financial services — cyclical and regulation-sensitive sector
• Industry P/E is 22.6 — POONAWALLA trades at a steep premium
• Sector benefits from credit growth and digital finance adoption

🧾 Conclusion

• POONAWALLA is currently reversing with weak technical indicators and valuation concerns
• Entry near ₹470 may offer upside toward ₹525–₹550 if momentum stabilizes
• High leverage and poor efficiency metrics warrant cautious approach despite recent profit growth