RELINFRA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.5
| Stock Code | RELINFRA | Market Cap | 5,192 Cr. | Current Price | 127 ₹ | High / Low | 425 ₹ |
| Book Value | 595 ₹ | Dividend Yield | 0.00 % | ROCE | -1.41 % | ROE | -8.12 % |
| Face Value | 10.0 ₹ | DMA 50 | 175 ₹ | DMA 200 | 239 ₹ | Chg in FII Hold | -1.35 % |
| Chg in DII Hold | -0.21 % | PAT Qtr | -166 Cr. | PAT Prev Qtr | -152 Cr. | RSI | 33.2 |
| MACD | -9.10 | Volume | 1,91,293 | Avg Vol 1Wk | 1,71,712 | Low price | 127 ₹ |
| High price | 425 ₹ | Debt to equity | 0.03 | 52w Index | 0.00 % | Qtr Profit Var | -75.2 % |
| EPS | -10.0 ₹ | Industry PE | 22.1 |
📊 Chart & Trend Analysis: RELINFRA is trading at 127 ₹, far below its 50 DMA (175 ₹) and 200 DMA (239 ₹), indicating strong bearish pressure. RSI at 33.2 suggests the stock is nearing oversold territory, while MACD at -9.10 confirms bearish momentum. Bollinger Bands show price hugging the lower band, signaling weakness with limited upside potential unless volume improves.
📈 Momentum Signals: Current volume (1.91 lakh) is slightly higher than the 1-week average (1.71 lakh), reflecting mild participation. RSI near oversold levels may trigger a short-term bounce, but sustained recovery requires price action above 175–200 ₹ with stronger volume.
🎯 Entry Zone: 120–130 ₹ (near support and oversold RSI)
🚪 Exit Zone: 170–190 ₹ (resistance near 50 DMA and trendline)
📌 Trend Status: Bearish trend with consolidation signs. A reversal is possible only if price sustains above 200–239 ₹ with volume confirmation.
Positive
- Book value of 595 ₹ provides margin of safety compared to current price.
- Debt-to-equity ratio of 0.03 indicates low leverage.
Limitation
- Stock trading well below both 50 DMA and 200 DMA, signaling technical weakness.
- Negative ROCE (-1.41%) and ROE (-8.12%) reflect poor efficiency.
- No dividend yield, reducing investor appeal.
- EPS at -10.0 ₹ indicates losses.
Company Negative News
- Quarterly PAT declined further to -166 Cr. from -152 Cr.
- Quarterly profit variation of -75.2% highlights worsening financials.
- FII holdings reduced (-1.35%) and DII holdings reduced (-0.21%), showing institutional caution.
Company Positive News
- Low debt-to-equity ratio suggests limited financial risk despite losses.
Industry
- Industry PE at 22.1 highlights that peers trade at healthier valuations compared to RELINFRA’s negative earnings.
- Infrastructure sector remains cyclical, dependent on government projects and capital expenditure trends.
Conclusion
⚖️ RELINFRA is in a bearish phase, trading below key moving averages with negative profitability metrics. Entry near 120–130 ₹ offers tactical opportunity for speculative traders, while exits around 170–190 ₹ align with resistance. Despite low leverage and strong book value, persistent losses and weak technicals warrant cautious positioning until a breakout above 200–239 ₹ confirms reversal.