RRKABEL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | RRKABEL | Market Cap | 17,769 Cr. | Current Price | 1,571 ₹ | High / Low | 1,651 ₹ |
| Stock P/E | 35.5 | Book Value | 227 ₹ | Dividend Yield | 0.38 % | ROCE | 28.0 % |
| ROE | 21.3 % | Face Value | 5.00 ₹ | DMA 50 | 1,439 ₹ | DMA 200 | 1,389 ₹ |
| Chg in FII Hold | 0.70 % | Chg in DII Hold | -0.61 % | PAT Qtr | 166 Cr. | PAT Prev Qtr | 130 Cr. |
| RSI | 63.5 | MACD | 45.2 | Volume | 13,32,062 | Avg Vol 1Wk | 11,70,264 |
| Low price | 1,009 ₹ | High price | 1,651 ₹ | PEG Ratio | 0.91 | Debt to equity | 0.13 |
| 52w Index | 87.6 % | Qtr Profit Var | 30.0 % | EPS | 43.0 ₹ | Industry PE | 24.5 |
Chart & Trend Analysis:
RRKABEL is trading at ₹1,571, above both its 50 DMA (₹1,439) and 200 DMA (₹1,389), confirming bullish momentum. RSI at 63.5 indicates strong momentum but not yet overbought. MACD at 45.2 shows strong positive crossover. Bollinger Bands place price near the upper band, reflecting sustained buying interest. Volume (13,32,062) is above the 1-week average (11,70,264), supporting trend continuation.
Momentum Signals:
- Short-term momentum remains bullish with strong FII inflows (+0.70%).
- Entry Zone: ₹1,520–₹1,540 (support near DMA levels).
- Exit Zone: ₹1,630–₹1,650 (resistance near recent highs).
- Trend Status: Trending upward; not consolidating or reversing.
Positive
- Strong ROE (21.3%) and ROCE (28.0%) highlight efficient capital use.
- EPS of ₹43.0 with consistent growth trajectory.
- Low debt-to-equity ratio (0.13) ensures financial stability.
- Quarterly PAT growth of 30% (₹166 Cr vs ₹130 Cr).
- 52-week gain of 87.6% reflects strong investor sentiment.
Limitation
- High P/E (35.5) compared to industry average (24.5) suggests premium valuation.
- Dividend yield is low at 0.38%, limiting income appeal.
- DII holdings declined (-0.61%), showing reduced domestic institutional interest.
Company Negative News
- Premium valuation may limit upside in the short term.
- Reduced DII participation could weigh on sentiment.
Company Positive News
- Strong quarterly profit growth supports fundamentals.
- FII inflows (+0.70%) highlight foreign investor confidence.
- Healthy technical momentum above key averages.
Industry
- Industry P/E at 24.5 highlights RRKABEL’s premium valuation.
- Sector growth supported by infrastructure expansion and rising demand for electrical products.
Conclusion
RRKABEL shows strong technical and fundamental momentum, supported by institutional inflows and sector growth. While valuations are stretched, disciplined entry near ₹1,520–₹1,540 with exits around ₹1,630–₹1,650 offers a risk-managed setup. Long-term investors can hold confidently, while traders should monitor resistance levels for profit-taking opportunities.