PREMIERENE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | PREMIERENE | Market Cap | 31,311 Cr. | Current Price | 691 ₹ | High / Low | 1,178 ₹ |
| Stock P/E | 203 | Book Value | 41.2 ₹ | Dividend Yield | 0.14 % | ROCE | 12.4 % |
| ROE | 9.49 % | Face Value | 1.00 ₹ | DMA 50 | 826 ₹ | DMA 200 | 951 ₹ |
| Chg in FII Hold | 0.25 % | Chg in DII Hold | -0.54 % | PAT Qtr | 12.6 Cr. | PAT Prev Qtr | 55.1 Cr. |
| RSI | 32.7 | MACD | -41.6 | Volume | 14,66,583 | Avg Vol 1Wk | 21,06,127 |
| Low price | 660 ₹ | High price | 1,178 ₹ | PEG Ratio | 2.37 | Debt to equity | 0.01 |
| 52w Index | 6.08 % | Qtr Profit Var | -65.0 % | EPS | 3.41 ₹ | Industry PE | 23.7 |
📊 Chart & Trend Analysis: PREMIERENE is trading at 691 ₹, well below its 50 DMA (826 ₹) and 200 DMA (951 ₹), indicating strong bearish pressure. RSI at 32.7 suggests the stock is oversold, while MACD at -41.6 confirms negative momentum. Bollinger Bands show price leaning towards the lower band, signaling weakness but also potential for a technical rebound near support at 660 ₹.
📈 Momentum Signals: Current volume (14.6 lakh) is lower than the 1-week average (21.0 lakh), reflecting reduced participation. Oversold RSI may trigger a short-term bounce, but sustained recovery requires stronger volume and price action above 826 ₹.
🎯 Entry Zone: 670–700 ₹ (near support and oversold RSI)
🚪 Exit Zone: 820–850 ₹ (resistance near 50 DMA and upper trendline)
📌 Trend Status: Bearish trend with consolidation signs. A reversal is possible if RSI rebounds and price closes above 826 ₹ with volume confirmation.
Positive
- Low debt-to-equity ratio of 0.01 indicates strong financial stability.
- FII holdings increased (+0.25%), showing marginal foreign investor confidence.
- ROCE at 12.4% and ROE at 9.49% reflect moderate efficiency.
Limitation
- Extremely high P/E of 203 compared to industry PE of 23.7, making valuation expensive.
- Stock trading below both 50 DMA and 200 DMA, signaling technical weakness.
- PEG ratio of 2.37 suggests overvaluation relative to growth.
Company Negative News
- Quarterly PAT dropped sharply from 55.1 Cr. to 12.6 Cr. (-65%).
- DII holdings reduced (-0.54%), showing domestic investor caution.
Company Positive News
- EPS of 3.41 ₹ reflects profitability despite recent weakness.
- Market cap of 31,311 Cr. highlights strong industry presence.
Industry
- Industry PE at 23.7 is far lower than PREMIERENE’s, suggesting sector peers are more reasonably valued.
- Media and entertainment sector remains cyclical, influenced by content performance and consumer demand.
Conclusion
⚖️ PREMIERENE is technically weak, trading below key moving averages with oversold RSI. Entry near 670–700 ₹ offers tactical opportunity, while exits around 820–850 ₹ align with resistance. Despite strong financial stability and FII inflows, expensive valuation and sharp profit decline warrant caution. Short-term traders may look for a rebound, but long-term investors should wait for sustained improvement in fundamentals and technical confirmation above 826 ₹.