POONAWALLA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | POONAWALLA | Market Cap | 35,155 Cr. | Current Price | 400 ₹ | High / Low | 570 ₹ |
| Stock P/E | 64.9 | Book Value | 127 ₹ | Dividend Yield | 0.00 % | ROCE | 7.51 % |
| ROE | 5.88 % | Face Value | 2.00 ₹ | DMA 50 | 421 ₹ | DMA 200 | 432 ₹ |
| Chg in FII Hold | 0.64 % | Chg in DII Hold | 4.45 % | PAT Qtr | 255 Cr. | PAT Prev Qtr | 150 Cr. |
| RSI | 40.1 | MACD | -4.36 | Volume | 15,27,720 | Avg Vol 1Wk | 15,14,962 |
| Low price | 361 ₹ | High price | 570 ₹ | PEG Ratio | -39.8 | Debt to equity | 4.70 |
| 52w Index | 18.4 % | Qtr Profit Var | 309 % | EPS | 6.67 ₹ | Industry PE | 18.7 |
📈 Trend Analysis: POONAWALLA is currently trading at ₹400, below both the 50 DMA (₹421) and 200 DMA (₹432), indicating weakness and a bearish undertone. The stock has fallen significantly from its 52-week high of ₹570 and is closer to its support levels.
📊 RSI: At 40.1, RSI suggests the stock is approaching oversold territory, which may limit further downside and hint at a potential base formation.
📉 MACD: Negative MACD (-4.36) confirms bearish momentum, aligning with the weak price action below moving averages.
📌 Bollinger Bands: Price is near the lower band, signaling possible consolidation or a short-term rebound if support holds.
🔎 Volume Trends: Current volume (15,27,720) is slightly above the 1-week average (15,14,962), showing active participation during the decline, which reflects selling pressure.
💡 Momentum Signals: Short-term momentum is weak. Optimal entry zone lies near ₹380–₹390 support levels. Exit/resistance zone is around ₹420–₹430, where both DMAs converge.
📌 Market Phase: The stock is consolidating with bearish bias, attempting to stabilize near support after a steep decline.
Positive
- 🚀 Strong quarterly PAT growth (₹255 Cr vs ₹150 Cr), up 309%.
- 📊 DII holdings increased by 4.45%, showing domestic institutional confidence.
- 💡 EPS growth (₹6.67) indicates improving profitability trend.
Limitation
- ⚠️ Current price below both 50 DMA and 200 DMA, signaling weakness.
- 📉 Low ROCE (7.51%) and ROE (5.88%) compared to peers.
- 🔎 PEG ratio (-39.8) reflects valuation concerns and growth inconsistency.
Company Negative News
- 📉 High debt-to-equity ratio (4.70), raising leverage risks.
- ⚠️ Weak return metrics despite recent profit growth.
Company Positive News
- 📈 Quarterly PAT surged 309%, showing strong operational improvement.
- 💡 FII holdings increased slightly (0.64%), indicating foreign interest.
Industry
- 🏭 Industry PE at 18.7, much lower than POONAWALLA’s 64.9, highlighting premium valuation concerns.
- 📊 Sector growth opportunities exist, but company fundamentals lag behind industry averages.
Conclusion
⚖️ POONAWALLA shows signs of consolidation after a steep decline, with weak technicals but improving quarterly profits. High debt and low efficiency metrics remain concerns. Strategy: consider entry near ₹380–₹390 support zones with cautious profit booking around ₹420–₹430 resistance. The stock is consolidating with a bearish bias, awaiting stronger volume and trend reversal signals.