⚠ 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.
RAMCOCEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | RAMCOCEM | Market Cap | 23,248 Cr. | Current Price | 985 ₹ | High / Low | 1,214 ₹ |
| Stock P/E | 123 | Book Value | 322 ₹ | Dividend Yield | 0.20 % | ROCE | 4.83 % |
| ROE | 1.56 % | Face Value | 1.00 ₹ | DMA 50 | 1,074 ₹ | DMA 200 | 1,046 ₹ |
| Chg in FII Hold | -0.17 % | Chg in DII Hold | -0.33 % | PAT Qtr | 5.24 Cr. | PAT Prev Qtr | 74.3 Cr. |
| RSI | 30.5 | MACD | -39.0 | Volume | 1,39,771 | Avg Vol 1Wk | 2,25,843 |
| Low price | 841 ₹ | High price | 1,214 ₹ | PEG Ratio | -2.47 | Debt to equity | 0.62 |
| 52w Index | 38.7 % | Qtr Profit Var | -37.2 % | EPS | 24.5 ₹ | Industry PE | 28.2 |
📊 Technical Analysis
- Chart Patterns: Stock is trading below both 50 DMA (₹1,074) and 200 DMA (₹1,046), showing weakness. Support at ₹841, resistance around ₹1,046–₹1,074.
- Moving Averages: Current price (₹985) is below both averages, confirming bearish bias.
- RSI: 30.5 — oversold zone, suggesting potential short-term bounce.
- MACD: -39.0 — bearish crossover, momentum still negative.
- Bollinger Bands: Price near lower band, indicating oversold conditions.
- Volume Trends: Current volume (1.39L) below 1-week average (2.25L), showing weak participation.
📈 Momentum & Signals
- Short-term Momentum: Weak, but oversold RSI hints at possible rebound.
- Entry Zone: ₹950–₹985 (near support, risk-managed).
- Exit Zone: ₹1,046–₹1,074 (first resistance), ₹1,120 (next resistance).
- Trend Status: Downtrend with oversold conditions; reversal only above ₹1,074.
✅ Positive
- Book value at ₹322 provides valuation cushion.
- EPS at ₹24.5 shows profitability despite weak margins.
- Dividend yield of 0.20% offers some investor incentive.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA, bearish technical setup.
- High P/E ratio (123) compared to industry PE (28.2), indicating overvaluation.
- Low ROE (1.56%) and ROCE (4.83%) reflect poor efficiency.
📰 Company Negative News
- PAT dropped sharply (₹5.24 Cr vs ₹74.3 Cr previous quarter).
- Quarterly profit variation at -37.2%, showing worsening financials.
- Stock corrected from 52-week high of ₹1,214 to current ₹985.
🌟 Company Positive News
- EPS remains positive at ₹24.5 despite weak profitability.
- PEG ratio at -2.47 suggests growth concerns but potential re-rating if earnings improve.
🏭 Industry
- Industry PE at 28.2, much lower than company PE (123), showing sector strength but company overvaluation.
- Cement sector remains cyclical with demand linked to infrastructure and housing growth.
🔎 Conclusion
- RAMCOCEM is in a downtrend with oversold RSI suggesting short-term bounce potential.
- Short-term traders may consider entry near ₹950–₹985 with exit around ₹1,046–₹1,074.
- Long-term investors should be cautious due to weak efficiency ratios, sharp profit decline, and high valuation.