RADICO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | RADICO | Market Cap | 47,552 Cr. | Current Price | 3,549 ₹ | High / Low | 3,695 ₹ |
| Stock P/E | 77.3 | Book Value | 243 ₹ | Dividend Yield | 0.11 % | ROCE | 24.6 % |
| ROE | 20.7 % | Face Value | 2.00 ₹ | DMA 50 | 3,193 ₹ | DMA 200 | 2,947 ₹ |
| Chg in FII Hold | -2.19 % | Chg in DII Hold | 3.32 % | PAT Qtr | 175 Cr. | PAT Prev Qtr | 162 Cr. |
| RSI | 67.2 | MACD | 137 | Volume | 1,56,526 | Avg Vol 1Wk | 3,82,640 |
| Low price | 2,436 ₹ | High price | 3,695 ₹ | PEG Ratio | 1.73 | Debt to equity | 0.15 |
| 52w Index | 88.4 % | Qtr Profit Var | 93.1 % | EPS | 45.0 ₹ | Industry PE | 32.2 |
📈 Trend Analysis: RADICO is trading at ₹3,549, well above both the 50 DMA (₹3,193) and 200 DMA (₹2,947), confirming a strong uptrend. The stock is close to its 52-week high of ₹3,695, reflecting bullish momentum with resistance nearby.
📊 RSI: At 67.2, RSI is approaching overbought territory, suggesting caution for fresh entries as short-term pullbacks are possible.
📉 MACD: Positive MACD (137) supports strong bullish momentum, aligning with price action above moving averages.
📌 Bollinger Bands: Price is near the upper band, signaling potential consolidation or minor correction in the short term.
🔎 Volume Trends: Current volume (1,56,526) is significantly below the 1-week average (3,82,640), showing reduced participation at higher levels, which may precede consolidation.
💡 Momentum Signals: Short-term momentum remains positive but stretched. Optimal entry zone lies near ₹3,450–₹3,500 support levels. Exit/resistance zone is around ₹3,680–₹3,700, where selling pressure may emerge.
📌 Market Phase: The stock is trending strongly, with signs of near-term consolidation due to overbought RSI and lower volumes.
Positive
- 🚀 Strong uptrend above both 50 DMA and 200 DMA.
- 💰 Quarterly PAT growth (₹175 Cr vs ₹162 Cr), up 93.1% YoY.
- 📈 High ROCE (24.6%) and ROE (20.7%) indicate efficient capital use.
- 🌍 DII holdings increased by 3.32%, showing strong domestic institutional confidence.
- 🔒 Low debt-to-equity ratio (0.15) ensures financial stability.
Limitation
- ⚠️ Elevated P/E ratio (77.3) compared to industry PE (32.2), suggesting premium valuation.
- 📉 RSI near overbought zone may trigger short-term corrections.
- 🔎 Lower trading volume near highs indicates cautious sentiment.
Company Negative News
- 📉 FII holdings decreased by 2.19%, showing reduced foreign investor interest.
- ⚠️ Premium valuation raises concerns about sustainability of current price levels.
Company Positive News
- 📈 Quarterly PAT growth highlights operational strength.
- 💡 EPS of ₹45 supports long-term earnings visibility.
- 🔒 Strong balance sheet with low leverage enhances investor confidence.
Industry
- 🏭 Industry PE at 32.2, much lower than RADICO’s 77.3, highlighting premium valuation.
- 📊 Sector growth driven by consumer demand and premium liquor market expansion.
Conclusion
⚖️ RADICO is trending strongly with solid fundamentals and investor confidence. However, overbought RSI and premium valuations suggest caution for fresh entries. Strategy: accumulate near ₹3,450–₹3,500 support zones and consider booking profits around ₹3,680–₹3,700 resistance. The stock is trending with potential consolidation before the next breakout.