RECLTD - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | RECLTD | Market Cap | 88,938 Cr. | Current Price | 337 ₹ | High / Low | 429 ₹ |
| Stock P/E | 5.46 | Book Value | 320 ₹ | Dividend Yield | 5.33 % | ROCE | 9.71 % |
| ROE | 20.1 % | Face Value | 10.0 ₹ | DMA 50 | 350 ₹ | DMA 200 | 366 ₹ |
| Chg in FII Hold | -0.67 % | Chg in DII Hold | 0.15 % | PAT Qtr | 3,362 Cr. | PAT Prev Qtr | 4,043 Cr. |
| RSI | 39.8 | MACD | -5.27 | Volume | 47,51,841 | Avg Vol 1Wk | 45,43,686 |
| Low price | 304 ₹ | High price | 429 ₹ | PEG Ratio | 0.40 | Debt to equity | 6.11 |
| 52w Index | 26.8 % | Qtr Profit Var | -20.6 % | EPS | 61.8 ₹ | Industry PE | 18.8 |
📈 Trend Analysis: RECLTD is trading at ₹337, below both the 50 DMA (₹350) and 200 DMA (₹366), indicating short-term and medium-term weakness. The stock has corrected from its 52-week high of ₹429 and is hovering near support levels.
📊 RSI: At 39.8, RSI suggests the stock is approaching oversold territory, which may limit further downside and hint at a potential rebound.
📉 MACD: Negative MACD (-5.27) confirms bearish momentum, aligning with weak price action below moving averages.
📌 Bollinger Bands: Price is near the lower band, signaling possible consolidation or a short-term bounce if support holds.
🔎 Volume Trends: Current volume (47,51,841) is slightly above the 1-week average (45,43,686), showing active participation during the decline, which reflects selling pressure.
💡 Momentum Signals: Short-term momentum is weak. Optimal entry zone lies near ₹325–₹330 support levels. Exit/resistance zone is around ₹355–₹365, where selling pressure may emerge.
📌 Market Phase: The stock is consolidating with a bearish bias, attempting to stabilize near support after recent declines.
Positive
- 🚀 EPS of ₹61.8 reflects strong earnings power.
- 💰 Attractive dividend yield of 5.33% provides income stability.
- 📈 ROE at 20.1% indicates solid shareholder returns.
- 🌍 DII holdings increased by 0.15%, showing domestic institutional confidence.
Limitation
- ⚠️ Current price below both 50 DMA and 200 DMA, signaling weakness.
- 📉 ROCE at 9.71% is modest compared to peers.
- 🔎 High debt-to-equity ratio (6.11) raises leverage concerns.
Company Negative News
- 📉 FII holdings decreased by 0.67%, showing reduced foreign investor interest.
- ⚠️ Quarterly PAT declined (₹3,362 Cr vs ₹4,043 Cr), down 20.6%.
Company Positive News
- 📈 EPS of ₹61.8 supports long-term earnings visibility.
- 💡 Dividend yield of 5.33% adds investor appeal.
- 🔒 Strong ROE (20.1%) highlights profitability strength.
Industry
- 🏭 Industry PE at 18.8, much higher than RECLTD’s 5.46, indicating undervaluation.
- 📊 Sector benefits from infrastructure and power financing demand.
Conclusion
⚖️ RECLTD is consolidating with short-term weakness but supported by strong dividend yield and undervaluation relative to peers. High debt levels and declining quarterly profits remain concerns. Strategy: consider entry near ₹325–₹330 support zones and book profits around ₹355–₹365 resistance. The stock is consolidating with cautious bias, awaiting stronger momentum for a sustained recovery.