RADICO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | RADICO | Market Cap | 45,835 Cr. | Current Price | 3,423 ₹ | High / Low | 3,695 ₹ |
| Stock P/E | 86.4 | Book Value | 218 ₹ | Dividend Yield | 0.12 % | ROCE | 16.2 % |
| ROE | 13.6 % | Face Value | 2.00 ₹ | DMA 50 | 2,954 ₹ | DMA 200 | 2,862 ₹ |
| Chg in FII Hold | -2.19 % | Chg in DII Hold | 3.32 % | PAT Qtr | 162 Cr. | PAT Prev Qtr | 139 Cr. |
| RSI | 70.7 | MACD | 177 | Volume | 5,03,394 | Avg Vol 1Wk | 5,26,943 |
| Low price | 2,310 ₹ | High price | 3,695 ₹ | PEG Ratio | 7.83 | Debt to equity | 0.21 |
| 52w Index | 80.4 % | Qtr Profit Var | 69.1 % | EPS | 38.7 ₹ | Industry PE | 40.4 |
Chart & Trend Analysis:
RADICO is trading at ₹3,423, well above its 50 DMA (₹2,954) and 200 DMA (₹2,862), confirming strong bullish momentum. RSI at 70.7 indicates overbought conditions, suggesting caution. MACD at 177 shows strong positive crossover. Bollinger Bands place price near the upper band, reflecting aggressive buying. Volume (5,03,394) is slightly below the 1-week average (5,26,943), showing reduced participation despite price strength.
Momentum Signals:
- Short-term momentum is bullish but overheated.
- Entry Zone: ₹3,300–₹3,350 (support near DMA levels).
- Exit Zone: ₹3,600–₹3,650 (resistance near recent highs).
- Trend Status: Trending upward; risk of near-term correction due to overbought RSI.
Positive
- Strong ROCE (16.2%) and ROE (13.6%) highlight efficient capital use.
- EPS of ₹38.7 supports valuation comfort.
- Low debt-to-equity ratio (0.21) ensures financial stability.
- Quarterly PAT growth of 69.1% (₹162 Cr vs ₹139 Cr).
- DII inflows (+3.32%) show strong domestic institutional confidence.
- 52-week gain of 80.4% highlights strong investor sentiment.
Limitation
- P/E (86.4) is significantly above industry average (40.4), indicating steep premium valuation.
- Dividend yield at 0.12% offers negligible income appeal.
- RSI above 70 suggests overbought conditions and potential profit-taking.
- PEG ratio of 7.83 indicates growth is overpriced.
Company Negative News
- Premium valuation may limit upside potential.
- Overbought RSI signals risk of near-term correction.
- FII holdings declined (-2.19%), showing reduced foreign investor confidence.
Company Positive News
- Strong quarterly profit growth reinforces earnings momentum.
- Healthy DII inflows support confidence in fundamentals.
- Price trading well above DMA levels confirms bullish bias.
Industry
- Industry P/E at 40.4 highlights RADICO’s steep premium valuation.
- Sector supported by consumer demand and premium product positioning.
Conclusion
RADICO shows strong technical and fundamental momentum, supported by earnings growth and domestic inflows. However, steep valuations and overbought RSI suggest caution. Tactical entries near ₹3,300–₹3,350 with exits around ₹3,600–₹3,650 provide a risk-managed setup. Long-term investors should monitor valuation and growth sustainability before fresh entries.