RHIM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | RHIM | Market Cap | 8,934 Cr. | Current Price | 433 ₹ | High / Low | 548 ₹ |
| Stock P/E | 49.5 | Book Value | 199 ₹ | Dividend Yield | 0.58 % | ROCE | 7.71 % |
| ROE | 5.62 % | Face Value | 1.00 ₹ | DMA 50 | 448 ₹ | DMA 200 | 470 ₹ |
| Chg in FII Hold | -0.37 % | Chg in DII Hold | 0.39 % | PAT Qtr | 41.3 Cr. | PAT Prev Qtr | 46.5 Cr. |
| RSI | 47.2 | MACD | -7.81 | Volume | 93,753 | Avg Vol 1Wk | 5,37,620 |
| Low price | 376 ₹ | High price | 548 ₹ | PEG Ratio | -8.51 | Debt to equity | 0.02 |
| 52w Index | 33.0 % | Qtr Profit Var | -15.4 % | EPS | 8.74 ₹ | Industry PE | 38.4 |
📊 Chart & Trend Analysis: RHIM is trading at 433 ₹, below both its 50 DMA (448 ₹) and 200 DMA (470 ₹), indicating short-term and medium-term weakness. RSI at 47.2 suggests neutral momentum, while MACD at -7.81 confirms bearish crossover. Bollinger Bands show price leaning towards the lower-mid band, signaling consolidation with downside risk.
📈 Momentum Signals: Current volume (93,753) is significantly lower than the 1-week average (5.37 lakh), reflecting weak participation. RSI near neutral levels suggests limited immediate upside. A rebound requires stronger volume and price action above 448–470 ₹.
🎯 Entry Zone: 420–435 ₹ (near support and neutral RSI)
🚪 Exit Zone: 460–480 ₹ (resistance near 200 DMA and upper trendline)
📌 Trend Status: Consolidating with bearish bias. A reversal is possible only if price sustains above 470 ₹ with volume confirmation.
Positive
- Low debt-to-equity ratio of 0.02 indicates strong financial stability.
- DII holdings increased (+0.39%), showing domestic investor support.
- EPS of 8.74 ₹ reflects profitability despite weak momentum.
Limitation
- Stock trading below both 50 DMA and 200 DMA, signaling technical weakness.
- High P/E of 49.5 compared to industry PE of 38.4, making valuation expensive.
- PEG ratio of -8.51 suggests poor growth-adjusted valuation.
- Weak ROCE (7.71%) and ROE (5.62%) reflect modest efficiency.
Company Negative News
- Quarterly PAT declined from 46.5 Cr. to 41.3 Cr. (-15.4%).
- FII holdings reduced (-0.37%), showing foreign investor caution.
Company Positive News
- DII inflows (+0.39%) indicate domestic confidence.
- Strong market cap of 8,934 Cr. reflects industry presence.
Industry
- Industry PE at 38.4 is lower than RHIM’s 49.5, suggesting sector peers are more reasonably valued.
- Refractories and industrial materials sector benefits from steel and infrastructure demand but remains cyclical.
Conclusion
⚖️ RHIM is consolidating with bearish bias, trading below key moving averages and showing weak efficiency metrics. Entry near 420–435 ₹ offers tactical opportunity, while exits around 460–480 ₹ align with resistance. Despite financial stability and domestic support, expensive valuation and declining profits warrant cautious positioning until a breakout above 470 ₹ confirms reversal.