⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
PRAJIND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | PRAJIND | Market Cap | 5,620 Cr. | Current Price | 306 ₹ | High / Low | 592 ₹ |
| Stock P/E | 35.6 | Book Value | 74.5 ₹ | Dividend Yield | 1.96 % | ROCE | 23.6 % |
| ROE | 18.2 % | Face Value | 2.00 ₹ | DMA 50 | 310 ₹ | DMA 200 | 377 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | -1.19 % | PAT Qtr | 37.1 Cr. | PAT Prev Qtr | 41.7 Cr. |
| RSI | 49.1 | MACD | -0.87 | Volume | 12,48,647 | Avg Vol 1Wk | 49,52,163 |
| Low price | 273 ₹ | High price | 592 ₹ | PEG Ratio | 1.68 | Debt to equity | 0.05 |
| 52w Index | 10.5 % | Qtr Profit Var | -33.4 % | EPS | 7.47 ₹ | Industry PE | 28.0 |
📊 Technical Analysis
- Trend: The stock is consolidating after a steep decline from highs, showing sideways movement near support.
- Moving Averages: Current price (₹306) is below 50 DMA (₹310) and 200 DMA (₹377), indicating bearish bias.
- RSI: 49.1 — neutral zone, neither overbought nor oversold.
- MACD: -0.87 — weak bearish momentum.
- Bollinger Bands: Price is near the middle band, suggesting consolidation.
- Volume Trends: Current volume (12.5L) is significantly lower than 1-week average (49.5L), showing reduced participation.
🎯 Entry & Exit Zones
- Support: ₹300 – ₹305 (near current levels)
- Resistance: ₹310 – ₹315 (near 50 DMA)
- Optimal Entry: Around ₹300 – ₹305 if support holds.
- Exit Zone: ₹310 – ₹315 for short-term traders.
✅ Positive
- Strong ROCE (23.6%) and ROE (18.2%) indicate efficient capital use.
- Low debt-to-equity ratio (0.05) ensures financial stability.
- Dividend yield of 1.96% provides steady income.
⚠️ Limitation
- High P/E (35.6) compared to industry average (28.0) — valuation is stretched.
- EPS of ₹7.47 is modest relative to price levels.
- Volume participation has dropped sharply, limiting momentum.
📉 Company Negative News
- Quarterly PAT declined from ₹41.7 Cr to ₹37.1 Cr.
- Qtr Profit Var is -33.4%, showing earnings pressure.
- FII holding decreased by 0.21% and DII holding decreased by 1.19%, reflecting cautious institutional sentiment.
📈 Company Positive News
- Strong capital efficiency metrics (ROCE 23.6%, ROE 18.2%).
- Dividend yield of 1.96% adds investor appeal.
🏭 Industry
- Industry PE is 28.0, lower than Praj Industries’ 35.6, suggesting premium valuation.
- Sector outlook supported by renewable energy and biofuel demand, but earnings volatility remains a concern.
🔎 Conclusion
- Praj Industries is consolidating near support after a steep correction from highs.
- Short-term momentum is weak, with limited upside unless volumes improve.
- Best strategy: Accumulate cautiously near ₹300 support, exit around ₹315 resistance.
- Overall, the stock is in a consolidation phase with modest rebound potential.