⚠ 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.
PREMIERENE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | PREMIERENE | Market Cap | 39,455 Cr. | Current Price | 870 ₹ | High / Low | 1,164 ₹ |
| Stock P/E | 256 | Book Value | 41.2 ₹ | Dividend Yield | 0.11 % | ROCE | 12.4 % |
| ROE | 9.49 % | Face Value | 1.00 ₹ | DMA 50 | 784 ₹ | DMA 200 | 901 ₹ |
| Chg in FII Hold | 0.25 % | Chg in DII Hold | -0.54 % | PAT Qtr | 12.6 Cr. | PAT Prev Qtr | 55.1 Cr. |
| RSI | 72.0 | MACD | 14.0 | Volume | 65,01,362 | Avg Vol 1Wk | 33,28,510 |
| Low price | 660 ₹ | High price | 1,164 ₹ | PEG Ratio | 2.99 | Debt to equity | 0.01 |
| 52w Index | 41.8 % | Qtr Profit Var | -65.0 % | EPS | 3.41 ₹ | Industry PE | 23.3 |
📊 Technical Analysis
- Trend: The stock is trending upward in the short term but faces resistance near recent highs.
- Moving Averages: Current price (₹870) is above 50 DMA (₹784) but slightly below 200 DMA (₹901), showing short-term strength but long-term caution.
- RSI: 72.0 — overbought zone, suggesting possible pullback.
- MACD: 14.0 — bullish crossover, momentum remains strong.
- Bollinger Bands: Price is near the upper band, indicating overextension and potential correction.
- Volume Trends: Current volume (65L) is almost double the 1-week average (33L), showing strong participation during the rally.
🎯 Entry & Exit Zones
- Support: ₹850 – ₹860 (near breakout zone)
- Resistance: ₹900 – ₹910 (near 200 DMA)
- Optimal Entry: Around ₹860 – ₹870 if support holds.
- Exit Zone: ₹900 – ₹910 for short-term traders.
✅ Positive
- Low debt-to-equity ratio (0.01) ensures financial stability.
- ROCE (12.4%) and ROE (9.49%) show moderate efficiency.
- FII holding increased by 0.25%, reflecting foreign investor confidence.
⚠️ Limitation
- Extremely high P/E (256) compared to industry average (23.3), making valuation unsustainable.
- Dividend yield is very low (0.11%), limiting income appeal.
- PEG ratio of 2.99 suggests expensive valuation relative to growth.
📉 Company Negative News
- Quarterly PAT dropped sharply (₹55.1 Cr → ₹12.6 Cr).
- Qtr Profit Var is -65%, showing earnings pressure.
- DII holding reduced by 0.54%, reflecting cautious domestic stance.
📈 Company Positive News
- Strong trading volumes indicate investor interest.
- Stock has rebounded from 52-week low (₹660) to current levels, showing resilience.
🏭 Industry
- Industry PE is 23.3, far below Premier Energies’ 256, suggesting extreme overvaluation.
- Sector outlook supported by renewable energy demand, but company-specific earnings volatility is a concern.
🔎 Conclusion
- Premier Energies is trending upward with strong short-term momentum but faces valuation risks.
- Overbought RSI and stretched P/E suggest caution for new entries.
- Best strategy: Enter near ₹860 support, exit around ₹910 resistance for short-term gains.
- Overall, the stock is in a trending phase but vulnerable to correction due to weak earnings and high valuation.