PRAJIND - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.8

📊 Technical Analysis

• Chart Patterns: Stock is trading near support (337 ₹) with resistance around 434 ₹ (200 DMA).
• Moving Averages: Current price (343 ₹) is slightly above 50 DMA (337 ₹) but below 200 DMA (434 ₹), showing mixed signals.
• RSI: At 57.4, the stock is neutral to slightly bullish, not overbought.
• MACD: Slightly negative (-1.07), suggesting mild consolidation despite price strength.
• Bollinger Bands: Price is near mid-band, pointing to sideways movement with potential breakout.
• Volume Trends: Current volume (27,55,829) is lower than 1-week average (1,30,85,084), showing reduced participation.

📈 Momentum & Signals

• Short-term Momentum: Neutral to mildly bullish due to price above 50 DMA and RSI strength.
• Entry Zone: 335–345 ₹ (near 50 DMA support).
• Exit Zone: 420–440 ₹ (resistance at 200 DMA).
• Trend Status: Currently consolidating with bullish undertone.

✅ Positive

• Strong ROCE (23.6%) and ROE (18.2%).
• Debt-free structure (Debt-to-equity: 0.05).
• EPS of 9.59 ₹ supports earnings visibility.
• FII holdings increased (+0.67%), showing foreign investor confidence.

⚠️ Limitation

• Stock trading below 200 DMA, showing weak long-term momentum.
• Quarterly profit variation shows decline (-28.0%).
• Volume participation is declining compared to average.
• High P/E ratio (35.7) compared to industry PE (33.2), indicating premium valuation.

📉 Company Negative News

• Quarterly PAT declined from 20.0 Cr. to 41.7 Cr. but variation shows -28% impact.
• DII holdings decreased (-2.60%), showing reduced domestic investor confidence.
• Stock has corrected sharply from 52-week high of 875 ₹.

📈 Company Positive News

• FII holdings increased, showing foreign support.
• Strong fundamentals with high ROCE and ROE.
• Dividend yield of 1.71% provides shareholder returns.

🏭 Industry

• Industry PE is 33.2, close to PRAJIND’s PE of 35.7, suggesting fair valuation.
• Sector growth supported by renewable energy and biofuel demand.

📝 Conclusion

• PRAJIND is technically consolidating with mild bullish signals (price above 50 DMA, RSI strength).
• Fundamentals remain strong with high ROCE and ROE, though profit variation is a concern.
• Best strategy: Accumulate near 335–345 ₹ and book profits around 420–440 ₹.
• Overall trend: Consolidation with bullish bias, awaiting stronger momentum confirmation.