⚠ 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.
RADICO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | RADICO | Market Cap | 35,630 Cr. | Current Price | 2,660 ₹ | High / Low | 3,695 ₹ |
| Stock P/E | 67.2 | Book Value | 218 ₹ | Dividend Yield | 0.15 % | ROCE | 16.2 % |
| ROE | 13.6 % | Face Value | 2.00 ₹ | DMA 50 | 2,811 ₹ | DMA 200 | 2,830 ₹ |
| Chg in FII Hold | 1.82 % | Chg in DII Hold | -1.45 % | PAT Qtr | 162 Cr. | PAT Prev Qtr | 139 Cr. |
| RSI | 44.0 | MACD | -25.2 | Volume | 4,17,369 | Avg Vol 1Wk | 3,92,490 |
| Low price | 2,132 ₹ | High price | 3,695 ₹ | PEG Ratio | 6.08 | Debt to equity | 0.21 |
| 52w Index | 33.8 % | Qtr Profit Var | 69.1 % | EPS | 38.7 ₹ | Industry PE | 31.9 |
📊 Technical Analysis
- Chart Patterns: Stock has corrected from its 52-week high (3,695 ₹) and is consolidating near mid-range levels.
- Moving Averages: Current price (2,660 ₹) is below both 50 DMA (2,811 ₹) and 200 DMA (2,830 ₹), showing short-term weakness.
- RSI: At 44.0, the stock is neutral, leaning toward oversold territory.
- MACD: Negative (-25.2), confirming bearish momentum.
- Bollinger Bands: Price near lower band, suggesting possible rebound if buying volume increases.
- Volume Trends: Current volume (4,17,369) is slightly above 1-week average (3,92,490), showing steady participation.
📈 Momentum & Signals
- Short-term: Weak momentum, but RSI suggests nearing reversal zone.
- Entry Zone: 2,600 ₹ – 2,660 ₹ (near support and oversold RSI).
- Exit Zone: 2,800 ₹ – 2,850 ₹ (near 50 DMA resistance).
- Trend Status: Consolidating with bearish bias; reversal possible if RSI rebounds and price sustains above 50 DMA.
✅ Positive
- Strong ROCE (16.2%) and ROE (13.6%) indicate efficient capital use.
- Low debt-to-equity ratio (0.21) ensures financial stability.
- Quarterly PAT growth (162 Cr. vs 139 Cr.) shows earnings improvement.
- FII holding increased (+1.82%), showing foreign investor confidence.
⚠️ Limitation
- High valuation: P/E 67.2 vs industry average 31.9.
- Dividend yield is modest at 0.15%.
- PEG ratio of 6.08 indicates expensive valuation relative to growth.
📉 Company Negative News
- Stock trading below both 50 DMA and 200 DMA, showing technical weakness.
- DII holding reduced (-1.45%), showing cautious domestic sentiment.
- MACD negative, confirming bearish momentum.
📈 Company Positive News
- Quarterly PAT growth of 69.1% highlights strong operational performance.
- EPS of 38.7 ₹ supports earnings strength.
- Low debt levels provide financial flexibility.
🏭 Industry
- Alcoholic beverages industry trades at PE 31.9, lower than Radico’s valuation.
- Sector growth supported by premiumization and rising consumer demand.
- Regulatory oversight and taxation remain challenges.
📝 Conclusion
- Radico is fundamentally strong but technically consolidating with weak short-term momentum.
- Stock is neutral, trading near support but below 50 DMA and 200 DMA resistance.
- Best strategy: Accumulate near support (2,600–2,660 ₹) and book profits near resistance (2,800–2,850 ₹).
- Long-term investors may hold for sector growth, while traders should wait for breakout above 50 DMA for stronger signals.