RAMCOCEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.3
| Stock Code | RAMCOCEM | Market Cap | 22,096 Cr. | Current Price | 935 ₹ | High / Low | 1,214 ₹ |
| Stock P/E | 116 | Book Value | 322 ₹ | Dividend Yield | 0.21 % | ROCE | 4.83 % |
| ROE | 1.56 % | Face Value | 1.00 ₹ | DMA 50 | 1,001 ₹ | DMA 200 | 1,026 ₹ |
| Chg in FII Hold | 0.06 % | Chg in DII Hold | 0.77 % | PAT Qtr | 5.24 Cr. | PAT Prev Qtr | 74.3 Cr. |
| RSI | 37.5 | MACD | -11.9 | Volume | 3,58,356 | Avg Vol 1Wk | 2,44,500 |
| Low price | 860 ₹ | High price | 1,214 ₹ | PEG Ratio | -2.35 | Debt to equity | 0.62 |
| 52w Index | 21.2 % | Qtr Profit Var | -37.2 % | EPS | 24.5 ₹ | Industry PE | 30.8 |
📈 Chart & Trend: RAMCOCEM is trading below both its 50 DMA (1,001 ₹) and 200 DMA (1,026 ₹), reflecting bearish momentum. RSI at 37.5 indicates oversold territory, while MACD at -11.9 confirms strong bearish crossover. Bollinger Bands are widening, suggesting volatility expansion with downside risk.
🔑 Momentum Signals: Current price (935 ₹) is near short-term support at 920–930 ₹. Resistance levels are seen at 970 ₹ and 1,000 ₹. Volume (3.58L) is above the 1-week average (2.44L), showing selling pressure with higher participation.
🎯 Entry Zone: 920–930 ₹ for speculative exposure.
💰 Exit Zone: 970 ₹ (partial profit) and 1,000 ₹ (full exit).
📊 Trend Status: Bearish trend with weak fundamentals.
Positive
- Book value at 322 ₹ provides asset backing.
- DII holdings increased (+0.77%), showing domestic support.
- FII holdings marginally increased (+0.06%).
- EPS at 24.5 ₹ offers valuation stability despite weak earnings.
Limitation
- Extremely high P/E (116) vs industry PE (30.8), indicating severe overvaluation.
- Weak ROCE (4.83%) and ROE (1.56%) highlight poor efficiency.
- PEG ratio at -2.35 reflects negative growth outlook.
- Debt-to-equity ratio at 0.62 adds financial risk.
- Price below both 50 DMA and 200 DMA confirms bearish structure.
Company Negative News
- PAT dropped sharply (5.24 Cr. vs 74.3 Cr.).
- Quarterly profit variation at -37.2% shows earnings deterioration.
- 52-week performance weak at 21.2% index level.
Company Positive News
- DII holdings increased significantly (+0.77%).
- FII holdings showed marginal improvement (+0.06%).
Industry
- Industry PE at 30.8 indicates sector trading at moderate valuations compared to RAMCOCEM’s premium.
- Cement sector facing margin pressures due to rising input costs.
Conclusion
RAMCOCEM is in a bearish trend with weak fundamentals and overvaluation concerns. Entry near 920–930 ₹ is only suitable for speculative trades with exits at 970–1,000 ₹. Persistent earnings decline, high debt, and poor efficiency metrics limit long-term attractiveness. Best approached with caution and strict stop-loss discipline.