RELINFRA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | RELINFRA | Market Cap | 2,756 Cr. | Current Price | 67.4 ₹ | High / Low | 425 ₹ |
| Book Value | 595 ₹ | Dividend Yield | 0.00 % | ROCE | -1.41 % | ROE | -8.12 % |
| Face Value | 10.0 ₹ | DMA 50 | 95.9 ₹ | DMA 200 | 179 ₹ | Chg in FII Hold | -0.19 % |
| Chg in DII Hold | 0.18 % | PAT Qtr | -166 Cr. | PAT Prev Qtr | -152 Cr. | RSI | 34.1 |
| MACD | -4.76 | Volume | 4,44,666 | Avg Vol 1Wk | 4,44,666 | Low price | 64.2 ₹ |
| High price | 425 ₹ | Debt to equity | 0.03 | 52w Index | 0.89 % | Qtr Profit Var | -75.2 % |
| EPS | -10.0 ₹ | Industry PE | 32.1 |
📈 Trend Analysis: RELINFRA is trading at ₹67.4, far below both the 50 DMA (₹95.9) and 200 DMA (₹179), indicating strong bearish momentum. The stock has collapsed from its 52-week high of ₹425 and is hovering near its 52-week low of ₹64.2.
📊 RSI: At 34.1, RSI suggests the stock is oversold, which may limit further downside but does not yet confirm reversal.
📉 MACD: Negative MACD (-4.76) confirms bearish momentum, aligning with weak price action below moving averages.
📌 Bollinger Bands: Price is near the lower band, signaling oversold conditions and possible short-term bounce.
🔎 Volume Trends: Current volume (4,44,666) matches the 1-week average, showing steady but weak participation, reflecting lack of strong buying interest.
💡 Momentum Signals: Short-term momentum is weak. Optimal entry zone lies near ₹64–₹68 support levels. Exit/resistance zone is around ₹95–₹100, where selling pressure may emerge.
📌 Market Phase: The stock is reversing from a steep decline but remains in a bearish structure, attempting to stabilize near its lows.
Positive
- 💡 Book value of ₹595 indicates strong asset backing relative to current price.
- 🌍 DII holdings increased by 0.18%, showing some domestic institutional support.
- 🔒 Low debt-to-equity ratio (0.03) ensures minimal leverage risk.
Limitation
- ⚠️ Current price far below both 50 DMA and 200 DMA, signaling strong weakness.
- 📉 Negative ROCE (-1.41%) and ROE (-8.12%) highlight poor efficiency.
- 🔎 EPS of -10.0 reflects losses.
- 📊 No meaningful P/E ratio due to negative earnings.
Company Negative News
- 📉 Quarterly PAT declined further (₹-166 Cr vs ₹-152 Cr), showing worsening losses.
- ⚠️ FII holdings decreased by 0.19%, reflecting reduced foreign investor confidence.
Company Positive News
- 💡 Strong book value relative to current market price highlights undervaluation potential.
- 🔒 Very low debt-to-equity ratio ensures financial stability despite losses.
- 🌍 DII inflows reflect some domestic confidence in the stock.
Industry
- 🏭 Industry PE at 32.1, but RELINFRA has no valid P/E due to losses, highlighting weak fundamentals compared to peers.
- 📊 Sector growth driven by infrastructure demand, though RELINFRA struggles to capitalize due to financial weakness.
Conclusion
⚖️ RELINFRA is reversing from steep declines but remains fundamentally weak with negative earnings and poor efficiency metrics. Strong book value and low debt provide some support, but losses and reduced foreign interest weigh heavily. Strategy: consider entry only near ₹64–₹68 support zones for speculative positions and exit around ₹95–₹100 resistance. The stock is reversing but remains high-risk, requiring cautious monitoring.