RAMCOCEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | RAMCOCEM | Market Cap | 21,592 Cr. | Current Price | 914 ₹ | High / Low | 1,214 ₹ |
| Stock P/E | 114 | Book Value | 322 ₹ | Dividend Yield | 0.22 % | ROCE | 4.83 % |
| ROE | 1.56 % | Face Value | 1.00 ₹ | DMA 50 | 965 ₹ | DMA 200 | 1,012 ₹ |
| Chg in FII Hold | 0.06 % | Chg in DII Hold | 0.77 % | PAT Qtr | 5.24 Cr. | PAT Prev Qtr | 74.3 Cr. |
| RSI | 43.5 | MACD | -19.3 | Volume | 2,22,616 | Avg Vol 1Wk | 1,79,835 |
| Low price | 860 ₹ | High price | 1,214 ₹ | PEG Ratio | -2.29 | Debt to equity | 0.62 |
| 52w Index | 15.2 % | Qtr Profit Var | -37.2 % | EPS | 24.5 ₹ | Industry PE | 29.0 |
📊 Chart Analysis: RAMCOCEM trades at ₹914, below both its 50 DMA (₹965) and 200 DMA (₹1,012), signaling medium-term weakness. RSI at 43.5 indicates mildly oversold conditions. MACD at -19.3 is bearish, confirming downward momentum. Bollinger Bands place the price near the lower band, suggesting pressure with potential for short-term bounce. Current volume (2.2L) is slightly above the 1-week average (1.8L), showing increased participation during declines.
📈 Momentum Signals: Short-term momentum is bearish. A move above ₹940 could provide relief rally signals, while a drop below ₹890 risks further downside.
💡 Entry Zone: ₹880–₹910 (support near recent lows).
🚪 Exit Zone: ₹970–₹1,000 (resistance near 50 DMA and trendline).
🔎 Trend Status: The stock is reversing downward after failing to sustain above ₹1,200, with weak fundamentals adding pressure.
Positive
- 📌 EPS of ₹24.5 shows profitability despite margin pressures.
- 📌 Institutional support with FII (+0.06%) and DII (+0.77%) holding increases.
- 📌 Strong book value of ₹322 provides asset backing.
Limitation
- ⚠️ High P/E of 114 compared to industry PE (29.0) indicates overvaluation.
- ⚠️ Weak ROCE (4.83%) and ROE (1.56%) show poor efficiency.
- ⚠️ PEG ratio (-2.29) reflects unsustainable growth outlook.
Company Negative News
- ❌ PAT dropped sharply from ₹74.3 Cr. to ₹5.24 Cr. (-37.2% variation).
- ❌ Debt-to-equity ratio of 0.62 adds financial risk.
Company Positive News
- ✅ Institutional investors increased holdings, showing confidence.
- ✅ Dividend yield of 0.22% provides minor shareholder return.
Industry
- 🌐 Cement sector remains cyclical, tied to infrastructure demand.
- 🌐 Industry PE at 29.0 is far lower than RAMCOCEM’s, highlighting valuation concerns.
Conclusion
📌 RAMCOCEM is reversing downward with bearish signals. Traders may consider entries near ₹880–₹910 and exits around ₹970–₹1,000 for short-term trades. Weak fundamentals, sharp profit decline, and high valuation make this a risky medium-term investment despite institutional support.
For deeper clarity, we could refine support and resistance mapping, expand on volume analysis to confirm momentum, or dive into RSI and MACD signals for short-term trading cues.