RECLTD - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | RECLTD | Market Cap | 94,692 Cr. | Current Price | 360 ₹ | High / Low | 452 ₹ |
| Stock P/E | 5.52 | Book Value | 314 ₹ | Dividend Yield | 5.00 % | ROCE | 9.92 % |
| ROE | 21.5 % | Face Value | 10.0 ₹ | DMA 50 | 363 ₹ | DMA 200 | 386 ₹ |
| Chg in FII Hold | -1.51 % | Chg in DII Hold | 0.35 % | PAT Qtr | 4,043 Cr. | PAT Prev Qtr | 4,426 Cr. |
| RSI | 46.8 | MACD | 1.61 | Volume | 2,13,86,177 | Avg Vol 1Wk | 1,40,47,961 |
| Low price | 331 ₹ | High price | 452 ₹ | PEG Ratio | 0.34 | Debt to equity | 6.24 |
| 52w Index | 23.9 % | Qtr Profit Var | 0.35 % | EPS | 65.2 ₹ | Industry PE | 19.1 |
📊 Chart & Trend Analysis: RECLTD is trading at 360 ₹, slightly below its 50 DMA (363 ₹) and 200 DMA (386 ₹), indicating short-term weakness but medium-term support. RSI at 46.8 suggests neutral momentum, while MACD at 1.61 confirms mild bullish crossover. Bollinger Bands show price stabilizing near the mid-band, signaling consolidation with potential upside if volume sustains.
📈 Momentum Signals: Current volume (2.13 Cr.) is significantly higher than the 1-week average (1.40 Cr.), reflecting strong participation. RSI near neutral levels suggests balanced momentum. Sustained price action above 365–370 ₹ could trigger a breakout towards the 386–400 ₹ resistance zone.
🎯 Entry Zone: 350–360 ₹ (near support and neutral RSI)
🚪 Exit Zone: 385–400 ₹ (resistance near 200 DMA and upper trendline)
📌 Trend Status: Consolidating with bullish bias. A breakout above 386–400 ₹ would confirm trend continuation towards 420–452 ₹.
Positive
- Attractive valuation with P/E of 5.52 vs industry PE of 19.1.
- Dividend yield of 5.00% supports income investors.
- Strong ROE at 21.5% and EPS of 65.2 ₹ indicate profitability.
- PEG ratio of 0.34 suggests undervaluation relative to growth.
- High trading volume shows strong market interest.
Limitation
- Stock trading below both 50 DMA and 200 DMA, signaling technical weakness.
- High debt-to-equity ratio of 6.24 indicates leverage risk.
- ROCE at 9.92% is modest compared to peers.
Company Negative News
- Quarterly PAT declined from 4,426 Cr. to 4,043 Cr.
- FII holdings reduced (-1.51%), showing foreign investor caution.
Company Positive News
- DII holdings increased (+0.35%), showing domestic investor support.
- Quarterly profit variation of +0.35% highlights stability despite decline.
Industry
- Industry PE at 19.1 is much higher than RECLTD’s 5.52, suggesting sector peers are more expensive.
- Power finance sector benefits from infrastructure expansion and energy demand growth.
Conclusion
⚖️ RECLTD is consolidating with bullish bias, supported by strong fundamentals and attractive valuation. Entry near 350–360 ₹ offers margin of safety, while exits around 385–400 ₹ align with resistance. Despite high leverage and modest ROCE, strong dividend yield, profitability, and undervaluation make RECLTD appealing for medium-term investors. A breakout above 386–400 ₹ could trigger a rally towards 420–452 ₹.