RAMCOCEM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.7

📈 Technical Analysis

• Chart Patterns: RAMCOCEM is trading near mid-range of its 52-week high/low, showing moderate bullish recovery from lows.
• Moving Averages: Current price (1,048 ₹) is above both 50 DMA (1,029 ₹) and 200 DMA (1,012 ₹), indicating short-term uptrend support.
• RSI: At 63.3, RSI is moderately strong but approaching overbought zone.
• MACD: Positive at 9.93, confirming bullish momentum.
• Bollinger Bands: Price moving toward upper band, suggesting strength but limited upside before consolidation.
• Volume Trends: Current volume (1.92L) is lower than average weekly volume (2.79L), showing reduced participation in recent sessions.

🎯 Momentum & Trade Zones

• Support Levels: 1,029 ₹ (50 DMA), 1,012 ₹ (200 DMA), and strong support at 950 ₹.
• Resistance Levels: 1,100–1,150 ₹ zone, with major resistance at 1,209 ₹ (52-week high).
• Entry Zone: Accumulate near 1,020–1,040 ₹ on dips.
• Exit Zone: Profit booking suggested near 1,100–1,150 ₹.
• Trend: Stock is trending upward but may consolidate near resistance levels.

✅ Positive

• EPS at 21.9 ₹ shows earnings recovery.
• Quarterly profit variation at +190% indicates strong improvement compared to previous quarters.
• Price trading above both 50 & 200 DMA, confirming bullish trend.
• DII holding increased by 0.63%, reflecting domestic institutional support.

⚠️ Limitation

• High P/E ratio (128) compared to industry average (33.2), suggesting overvaluation.
• Low ROCE (4.83%) and ROE (1.56%) indicate weak efficiency.
• Dividend yield at only 0.19%, offering minimal shareholder return.
• Volume lower than average, showing reduced investor participation.

📉 Company Negative News

• Quarterly PAT declined from 86 Cr. to 74.3 Cr.
• FII holding reduced by -0.28%, showing weaker foreign investor confidence.
• Debt-to-equity ratio at 0.62, indicating moderate leverage.

📊 Company Positive News

• Strong quarterly profit variation (+190%) despite sequential decline.
• DII holding increased, showing domestic support.
• Stock trading above key moving averages, reflecting technical strength.

🏭 Industry

• Industry P/E at 33.2, much lower than RAMCOCEM’s 128, suggesting premium valuation.
• Cement sector demand remains steady, but margin pressures persist due to input costs.

📝 Conclusion

• RAMCOCEM is in a bullish uptrend but valuations are stretched.
• Short-term momentum is positive, but RSI nearing overbought zone suggests caution.
• Best strategy: accumulate near 1,020–1,040 ₹ and book profits near 1,100–1,150 ₹.
• Medium-term outlook cautiously positive; sustained breakout above 1,209 ₹ needed for further upside.