⚠ 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.
RECLTD - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | RECLTD | Market Cap | 86,989 Cr. | Current Price | 330 ₹ | High / Low | 450 ₹ |
| Stock P/E | 5.07 | Book Value | 314 ₹ | Dividend Yield | 5.45 % | ROCE | 9.92 % |
| ROE | 21.5 % | Face Value | 10.0 ₹ | DMA 50 | 350 ₹ | DMA 200 | 375 ₹ |
| Chg in FII Hold | -1.51 % | Chg in DII Hold | 0.35 % | PAT Qtr | 4,043 Cr. | PAT Prev Qtr | 4,426 Cr. |
| RSI | 42.6 | MACD | -5.86 | Volume | 1,08,40,326 | Avg Vol 1Wk | 1,11,49,512 |
| Low price | 321 ₹ | High price | 450 ₹ | PEG Ratio | 0.31 | Debt to equity | 6.24 |
| 52w Index | 7.34 % | Qtr Profit Var | 0.35 % | EPS | 65.2 ₹ | Industry PE | 17.5 |
📊 Technical Analysis
- Chart Patterns: Stock has corrected from its 52-week high (450 ₹) and is trading near support levels.
- Moving Averages: Current price (330 ₹) is below both 50 DMA (350 ₹) and 200 DMA (375 ₹), showing bearish trend.
- RSI: At 42.6, the stock is neutral but leaning toward oversold territory.
- MACD: Negative (-5.86), confirming short-term bearish momentum.
- Bollinger Bands: Price near lower band, suggesting possible rebound if buying volume increases.
- Volume Trends: Current volume (1,08,40,326) is slightly below 1-week average (1,11,49,512), showing reduced participation.
📈 Momentum & Signals
- Short-term: Weak momentum, but RSI suggests nearing reversal zone.
- Entry Zone: 320 ₹ – 330 ₹ (near support and oversold RSI).
- Exit Zone: 350 ₹ – 360 ₹ (near 50 DMA resistance).
- Trend Status: Consolidating with bearish bias; reversal possible if RSI rebounds and price sustains above 50 DMA.
✅ Positive
- Attractive valuation: P/E 5.07 vs industry average 17.5.
- Strong ROE (21.5%) highlights profitability.
- Dividend yield of 5.45% provides steady income.
- EPS of 65.2 ₹ supports earnings strength.
- DII holding increased (+0.35%), showing domestic investor confidence.
⚠️ Limitation
- High debt-to-equity ratio (6.24) increases financial risk.
- ROCE relatively modest at 9.92%.
- Stock trading below both 50 DMA and 200 DMA, showing weak technical strength.
📉 Company Negative News
- Quarterly PAT declined (4,043 Cr. vs 4,426 Cr.).
- FII holding reduced (-1.51%), showing cautious foreign sentiment.
- Stock has lost momentum, trading far below 52-week high (450 ₹).
📈 Company Positive News
- EPS of 65.2 ₹ highlights strong earnings base.
- Dividend yield of 5.45% supports investor confidence.
- Valuation remains attractive compared to industry peers.
🏭 Industry
- Power finance sector trades at PE 17.5, much higher than RECLTD’s valuation, making it relatively undervalued.
- Sector growth supported by infrastructure and renewable energy financing.
- Government push for energy projects supports long-term demand.
📝 Conclusion
- RECLTD is fundamentally strong with attractive valuation and high dividend yield but technically weak in the short term.
- Stock is consolidating near support with bearish bias; RSI suggests possible rebound.
- Best strategy: Accumulate near support (320–330 ₹) and book profits near resistance (350–360 ₹).
- Long-term investors benefit from undervaluation and dividend yield, but should monitor debt levels closely.