⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SARDAEN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | SARDAEN | Market Cap | 20,079 Cr. | Current Price | 569 ₹ | High / Low | 640 ₹ |
| Stock P/E | 22.2 | Book Value | 181 ₹ | Dividend Yield | 0.26 % | ROCE | 16.6 % |
| ROE | 12.9 % | Face Value | 1.00 ₹ | DMA 50 | 557 ₹ | DMA 200 | 524 ₹ |
| Chg in FII Hold | -0.04 % | Chg in DII Hold | 0.39 % | PAT Qtr | 163 Cr. | PAT Prev Qtr | 240 Cr. |
| RSI | 51.4 | MACD | -2.40 | Volume | 3,05,070 | Avg Vol 1Wk | 5,78,952 |
| Low price | 420 ₹ | High price | 640 ₹ | PEG Ratio | -7.28 | Debt to equity | 0.23 |
| 52w Index | 67.9 % | Qtr Profit Var | -13.8 % | EPS | 25.7 ₹ | Industry PE | 19.0 |
📈 Chart & Trend Analysis
- Moving Averages: Current price (₹569) is above both 50 DMA (₹557) and 200 DMA (₹524), confirming bullish momentum.
- RSI: At 51.4, the stock is neutral, neither overbought nor oversold.
- MACD: Negative (-2.40), suggesting mild bearish divergence despite price strength.
- Bollinger Bands: Price is near the mid-band, indicating consolidation.
- Volume Trends: Current volume (3,05,070) is below 1-week average (5,78,952), showing weaker participation.
📊 Momentum & Signals
- Short-term momentum: Neutral, with price above moving averages but MACD showing weakness.
- Support Zone: ₹555 – ₹560 (near-term support).
- Resistance Zone: ₹590 – ₹600 (recent highs and psychological barrier).
- Entry Zone: ₹560 – ₹570 (near support, cautious entry).
- Exit Zone: ₹590 – ₹600 (resistance levels).
📉 Trend Status
The stock is currently in a consolidation phase with price holding above moving averages but MACD signaling weakness. A breakout above ₹600 could confirm continuation of the uptrend.
✅ Positive
- Strong ROCE (16.6%) and ROE (12.9%) indicate efficient capital use.
- Low debt-to-equity ratio (0.23), showing financial stability.
- EPS of ₹25.7 reflects solid earnings power.
⚠️ Limitation
- Quarterly profit variation (-13.8%) shows earnings volatility.
- PEG ratio negative (-7.28), suggesting poor growth-adjusted valuation.
- Dividend yield is low (0.26%), limiting income appeal.
📰 Company Negative News
- PAT declined (₹163 Cr vs ₹240 Cr previous quarter), showing earnings pressure.
- FII holding decreased slightly (-0.04%), reflecting reduced foreign investor confidence.
🌟 Company Positive News
- DII holding increased (+0.39%), showing domestic institutional support.
- Strong 52-week performance (67.9% index gain), reflecting investor confidence.
🏦 Industry
- Industry PE at 19.0, lower than SARDAEN’s 22.2, suggesting peers are cheaper.
- Steel and metals sector remains cyclical but benefits from infrastructure demand.
📌 Conclusion
SARDAEN is in a consolidation phase with price strength above moving averages but weak MACD signals. Entry near ₹560 – ₹570 with exit around ₹590 – ₹600 is optimal for short-term traders. Long-term investors should weigh strong fundamentals against earnings volatility and modest dividend yield.