RECLTD - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | RECLTD | Market Cap | 93,295 Cr. | Current Price | 354 ₹ | High / Low | 432 ₹ |
| Stock P/E | 5.73 | Book Value | 320 ₹ | Dividend Yield | 5.08 % | ROCE | 9.71 % |
| ROE | 20.1 % | Face Value | 10.0 ₹ | DMA 50 | 353 ₹ | DMA 200 | 370 ₹ |
| Chg in FII Hold | -0.67 % | Chg in DII Hold | 0.15 % | PAT Qtr | 3,362 Cr. | PAT Prev Qtr | 4,043 Cr. |
| RSI | 48.3 | MACD | 8.23 | Volume | 96,06,915 | Avg Vol 1Wk | 1,10,94,414 |
| Low price | 304 ₹ | High price | 432 ₹ | PEG Ratio | 0.42 | Debt to equity | 6.11 |
| 52w Index | 39.2 % | Qtr Profit Var | -20.6 % | EPS | 61.8 ₹ | Industry PE | 19.8 |
Chart & Trend Analysis:
RECLTD is trading at ₹354, near its 50 DMA (₹353) but below the 200 DMA (₹370), showing short-term support but medium-term weakness. RSI at 48.3 indicates neutral-to-bearish momentum. MACD at 8.23 shows mild positive crossover. Bollinger Bands place price near the mid-band, reflecting consolidation. Volume (96,06,915) is slightly below the 1-week average (1,10,94,414), suggesting reduced participation.
Momentum Signals:
- Short-term momentum is neutral with mild bullish bias.
- Entry Zone: ₹340–₹350 (support near 50 DMA).
- Exit Zone: ₹370–₹380 (resistance near 200 DMA).
- Trend Status: Consolidating; awaiting breakout confirmation.
Positive
- Attractive P/E (5.73) compared to industry average (19.8), indicating undervaluation.
- Strong ROE (20.1%) supports profitability.
- Dividend yield of 5.08% adds income appeal.
- EPS of ₹61.8 provides valuation comfort.
- Low PEG ratio (0.42) suggests growth potential at fair valuation.
Limitation
- ROCE at 9.71% is modest compared to peers.
- High debt-to-equity ratio (6.11) raises leverage concerns.
- Quarterly PAT declined (₹3,362 Cr vs ₹4,043 Cr), showing earnings pressure.
- Price below 200 DMA indicates medium-term weakness.
Company Negative News
- Quarterly profit variation (-20.6%) highlights earnings slowdown.
- FII holdings declined (-0.67%), showing reduced foreign confidence.
Company Positive News
- Dividend yield above 5% supports long-term investors.
- DII inflows (+0.15%) show domestic institutional support.
- Valuation remains attractive compared to industry peers.
Industry
- Industry P/E at 19.8 highlights RECLTD’s undervaluation.
- Sector supported by infrastructure financing and government initiatives.
Conclusion
RECLTD is consolidating near support levels with neutral momentum. While fundamentals remain attractive with strong ROE, dividend yield, and low P/E, earnings pressure and high leverage pose risks. Tactical entries near ₹340–₹350 with exits around ₹370–₹380 provide a balanced swing trade setup. Long-term investors can hold for valuation comfort, while traders should wait for breakout confirmation above 200 DMA.