RADICO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | RADICO | Market Cap | 36,783 Cr. | Current Price | 2,744 ₹ | High / Low | 3,695 ₹ |
| Stock P/E | 69.3 | Book Value | 218 ₹ | Dividend Yield | 0.15 % | ROCE | 16.2 % |
| ROE | 13.6 % | Face Value | 2.00 ₹ | DMA 50 | 3,031 ₹ | DMA 200 | 2,866 ₹ |
| Chg in FII Hold | 1.82 % | Chg in DII Hold | -1.45 % | PAT Qtr | 162 Cr. | PAT Prev Qtr | 139 Cr. |
| RSI | 39.1 | MACD | -101 | Volume | 2,93,720 | Avg Vol 1Wk | 6,92,596 |
| Low price | 1,846 ₹ | High price | 3,695 ₹ | PEG Ratio | 6.28 | Debt to equity | 0.21 |
| 52w Index | 48.6 % | Qtr Profit Var | 69.1 % | EPS | 38.7 ₹ | Industry PE | 31.4 |
📊 Chart & Trend Analysis: RADICO is trading at 2,744 ₹, below both its 50 DMA (3,031 ₹) and 200 DMA (2,866 ₹), indicating short-term and medium-term weakness. RSI at 39.1 suggests the stock is nearing oversold territory. MACD at -101 confirms bearish momentum. Bollinger Bands show price leaning towards the lower band, signaling pressure but also potential for a rebound near support at 2,700–2,750 ₹.
📈 Momentum Signals: Current volume (2.9 lakh) is significantly lower than the 1-week average (6.9 lakh), reflecting weak participation. RSI near oversold levels may trigger a short-term bounce, but sustained recovery requires stronger volume and price action above 2,866–3,031 ₹.
🎯 Entry Zone: 2,700–2,750 ₹ (near support and oversold RSI)
🚪 Exit Zone: 2,900–3,050 ₹ (resistance near 200 DMA and 50 DMA)
📌 Trend Status: Consolidating with bearish bias. A reversal is possible if RSI rebounds and price sustains above 3,031 ₹ with volume confirmation.
Positive
- Strong ROCE at 16.2% and ROE at 13.6% indicate efficient capital use.
- Low debt-to-equity ratio of 0.21 shows financial stability.
- Quarterly PAT improved to 162 Cr. from 139 Cr., showing sequential growth.
- EPS of 38.7 ₹ reflects profitability.
- FII holdings increased (+1.82%), showing foreign investor confidence.
Limitation
- Stock trading below both 50 DMA and 200 DMA, signaling technical weakness.
- High P/E of 69.3 compared to industry PE of 31.4, making valuation expensive.
- PEG ratio of 6.28 suggests overvaluation relative to growth.
- Volume trend declining, reducing breakout probability.
Company Negative News
- DII holdings reduced (-1.45%), showing domestic investor caution.
- MACD indicates bearish crossover, limiting immediate upside.
Company Positive News
- Quarterly profit variation of +69.1% highlights strong earnings growth.
- Strong market cap of 36,783 Cr. reflects industry leadership.
Industry
- Industry PE at 31.4 is much lower than RADICO’s 69.3, suggesting sector peers are more reasonably valued.
- Alcoholic beverages sector benefits from rising consumer demand and premiumization trends.
Conclusion
⚖️ RADICO is consolidating with bearish bias, trading below key moving averages but nearing oversold RSI levels. Entry near 2,700–2,750 ₹ offers tactical opportunity, while exits around 2,900–3,050 ₹ align with resistance. Strong fundamentals and profit growth support medium-term stability, but expensive valuation and weak technicals warrant cautious positioning until a breakout above 3,031 ₹ confirms reversal.