RKFORGE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | RKFORGE | Market Cap | 9,226 Cr. | Current Price | 510 ₹ | High / Low | 863 ₹ |
| Stock P/E | 37.0 | Book Value | 169 ₹ | Dividend Yield | 0.39 % | ROCE | 6.52 % |
| ROE | 10.9 % | Face Value | 2.00 ₹ | DMA 50 | 517 ₹ | DMA 200 | 588 ₹ |
| Chg in FII Hold | -1.66 % | Chg in DII Hold | 0.53 % | PAT Qtr | 19.9 Cr. | PAT Prev Qtr | 0.37 Cr. |
| RSI | 50.5 | MACD | -2.22 | Volume | 1,03,300 | Avg Vol 1Wk | 3,94,399 |
| Low price | 473 ₹ | High price | 863 ₹ | PEG Ratio | 2.63 | Debt to equity | 0.71 |
| 52w Index | 9.44 % | Qtr Profit Var | 30.6 % | EPS | 13.4 ₹ | Industry PE | 28.0 |
📊 Chart & Trend Analysis: RKFORGE is trading at 510 ₹, slightly below its 50 DMA (517 ₹) and well below its 200 DMA (588 ₹), indicating short-term weakness and medium-term bearish bias. RSI at 50.5 suggests neutral momentum, while MACD at -2.22 confirms mild bearish crossover. Bollinger Bands show price hovering near the mid-lower band, signaling consolidation with limited upside unless volume improves.
📈 Momentum Signals: Current volume (1.03 lakh) is significantly lower than the 1-week average (3.94 lakh), reflecting weak participation. RSI near neutral levels suggests balanced momentum, but lack of volume reduces breakout probability. Sustained price action above 517–530 ₹ could trigger a move towards 560–580 ₹.
🎯 Entry Zone: 495–510 ₹ (near support and neutral RSI)
🚪 Exit Zone: 560–580 ₹ (resistance near 200 DMA and upper trendline)
📌 Trend Status: Consolidating with bearish bias. A reversal is possible if price sustains above 588 ₹ with strong volume confirmation.
Positive
- Quarterly PAT surged to 19.9 Cr. from 0.37 Cr., showing strong recovery.
- DII holdings increased (+0.53%), reflecting domestic investor confidence.
- EPS of 13.4 ₹ indicates profitability.
- Moderate debt-to-equity ratio of 0.71 suggests manageable leverage.
Limitation
- Stock trading below both 50 DMA and 200 DMA, signaling technical weakness.
- High P/E of 37.0 compared to industry PE of 28.0, making valuation expensive.
- PEG ratio of 2.63 suggests overvaluation relative to growth.
- ROCE at 6.52% and ROE at 10.9% reflect modest efficiency.
Company Negative News
- FII holdings reduced (-1.66%), showing foreign investor caution.
- Weak trading volume compared to average, limiting momentum.
Company Positive News
- Quarterly profit variation of +30.6% highlights earnings growth.
- Strong market cap of 9,226 Cr. reflects industry presence.
Industry
- Industry PE at 28.0 is lower than RKFORGE’s 37.0, suggesting sector peers are more reasonably valued.
- Forging and engineering sector benefits from infrastructure and automotive demand but remains cyclical.
Conclusion
⚖️ RKFORGE is consolidating with bearish bias, trading below key moving averages and showing weak volume trends. Entry near 495–510 ₹ offers tactical opportunity, while exits around 560–580 ₹ align with resistance. Despite profit recovery and domestic inflows, expensive valuation and weak technicals warrant cautious positioning until a breakout above 588 ₹ confirms reversal.