RADICO - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.6

📊 Chart Patterns: RADICO is trading above its 50 DMA (3,158 ₹) and well above its 200 DMA (2,815 ₹). Current price (3,191 ₹) indicates strength, though resistance is visible near the recent high of 3,695 ₹. The stock is forming a consolidation pattern after a strong rally.

📈 Moving Averages: Price > 50 DMA and > 200 DMA → bullish alignment, showing medium-term strength.

📉 RSI: 47.4 → neutral zone, suggesting balanced momentum without overbought/oversold signals.

📉 MACD: -11.7 → mild bearish crossover, indicating short-term weakness despite overall uptrend.

📊 Bollinger Bands: Price near mid-band, suggesting consolidation with potential breakout if volume rises.

📊 Volume Trends: Current volume (4,27,233) is higher than 1-week average (2,43,965) → accumulation, showing investor interest despite short-term weakness.

📍 Support Levels: 3,150 ₹ (DMA 50), 3,000 ₹, and 2,815 ₹ (DMA 200).

📍 Resistance Levels: 3,250–3,300 ₹, 3,450 ₹, and 3,695 ₹ (recent high).

🔎 Trend: The stock is consolidating between 3,150–3,300 ₹. A breakout above 3,300 ₹ could trigger bullish momentum toward 3,450–3,695 ₹, while a drop below 3,150 ₹ may lead to correction toward 3,000 ₹.

Positive

• 📈 EPS at 34.3 ₹ reflects strong earnings power.
• 📊 ROCE (16.2%) and ROE (13.6%) show healthy capital efficiency.
• 📊 FII holdings increased (+0.23%), showing foreign investor confidence.
• 📊 Quarterly profit variation (+69.1% YoY) indicates strong growth momentum.

Limitation

• ⚠️ High P/E ratio (92.1) compared to industry PE (36.2) → valuation premium.
• ⚠️ PEG ratio (8.34) suggests expensive growth expectations.
• ⚠️ Dividend yield at 0.13% is very low.
• ⚠️ MACD negative, showing short-term weakness.

Company Negative News

• 📉 DII holdings declined (-0.48%), showing reduced domestic investor confidence.
• 📉 PAT stagnant at 139 Cr. (no sequential growth).

Company Positive News

• 📈 Strong YoY profit growth (+69.1%).
• 📊 Price trading above both 50 DMA and 200 DMA, showing resilience.
• 📊 Increased foreign institutional participation.

Industry

• 🍷 Alcoholic beverages sector PE at 36.2, much lower than RADICO’s PE (92.1), suggesting overvaluation.
• 📊 Industry supported by premiumization trends and rising demand for branded spirits.

Conclusion

🔎 RADICO is consolidating with mixed signals — price above DMAs and strong volume support, but MACD negative and valuation stretched. Optimal entry zone lies near 3,150–3,200 ₹ if support holds, while exit/resistance zone is 3,450–3,695 ₹. Long-term investors should be cautious of high valuation but may hold for growth momentum. Short-term traders should watch for breakout above 3,300 ₹ for momentum trades.