ROUTE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | ROUTE | Market Cap | 4,047 Cr. | Current Price | 642 ₹ | High / Low | 1,328 ₹ |
| Stock P/E | 29.1 | Book Value | 205 ₹ | Dividend Yield | 1.71 % | ROCE | 16.3 % |
| ROE | 12.4 % | Face Value | 10.0 ₹ | DMA 50 | 700 ₹ | DMA 200 | 864 ₹ |
| Chg in FII Hold | -0.62 % | Chg in DII Hold | -0.67 % | PAT Qtr | 32.9 Cr. | PAT Prev Qtr | 30.4 Cr. |
| RSI | 34.2 | MACD | -11.8 | Volume | 1,34,480 | Avg Vol 1Wk | 1,21,057 |
| Low price | 636 ₹ | High price | 1,328 ₹ | PEG Ratio | 0.42 | Debt to equity | 0.00 |
| 52w Index | 0.79 % | Qtr Profit Var | -31.4 % | EPS | 18.8 ₹ | Industry PE | 13.8 |
📊 Chart Patterns: ROUTE is trading at 642 ₹, below both 50 DMA (700 ₹) and 200 DMA (864 ₹). This indicates strong bearish momentum. The price is very close to its 52-week low (636 ₹), reflecting heavy downside pressure and weak recovery signals.
📉 RSI: At 34.2, RSI is near oversold territory, suggesting weak momentum but potential for a short-term bounce.
📉 MACD: Negative at -11.8, confirming bearish crossover and continued downward trend.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.
📈 Volume Trends: Current volume (1.34 lakh) is slightly higher than average weekly volume (1.21 lakh), showing moderate participation, likely driven by selling pressure.
📌 Momentum Signals: Strong bearish bias with oversold RSI. A short-term relief rally is possible, but trend remains weak.
🎯 Entry Zone: 635–645 ₹ (near 52-week low support).
🎯 Exit Zone: 690–710 ₹ (near 50 DMA resistance).
📉 Trend: The stock is trending downward with bearish bias, not yet showing reversal signs.
Positive
- 📈 EPS at 18.8 ₹, showing profitability.
- 📊 ROE at 12.4% and ROCE at 16.3% indicate moderate efficiency.
- 📈 Dividend yield of 1.71% adds investor appeal.
- 📊 Debt-free balance sheet (Debt-to-equity 0.00) provides financial stability.
Limitation
- ⚠️ Trading below both 50 DMA and 200 DMA, showing technical weakness.
- ⚠️ RSI and MACD both weak, signaling bearish momentum.
- ⚠️ PEG ratio at 0.42 indicates valuation concerns despite growth prospects.
- ⚠️ Institutional holdings declined (FII -0.62%, DII -0.67%), showing reduced confidence.
Company Negative News
- 📉 Quarterly profit variation (-31.4%) indicates declining profitability momentum.
- 📉 Stock trading near lower end of 52-week range (0.79% index), reflecting weakness.
Company Positive News
- 📈 PAT improved slightly from 30.4 Cr. to 32.9 Cr. despite overall weakness.
- 📈 Dividend yield supports investor sentiment.
- 📈 Debt-free balance sheet enhances financial resilience.
Industry
- 🏭 Industry PE at 13.8, much lower than ROUTE’s PE (29.1), suggesting sector is more reasonably valued.
- 📊 IT services and communication sector showing steady demand growth but facing valuation pressures.
Conclusion
🔎 ROUTE is trending downward, trading below key moving averages with weak technical indicators. RSI near oversold levels may provide short-term bounce opportunities, but MACD and volume confirm bearish momentum. Entry near 635–645 ₹ with exit around 690–710 ₹ is optimal for traders. Long-term investors should be cautious given declining profits, high valuation, and reduced institutional confidence despite debt-free status.