SARDAEN - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | SARDAEN | Market Cap | 18,516 Cr. | Current Price | 525 ₹ | High / Low | 640 ₹ |
| Stock P/E | 20.5 | Book Value | 181 ₹ | Dividend Yield | 0.28 % | ROCE | 16.6 % |
| ROE | 12.9 % | Face Value | 1.00 ₹ | DMA 50 | 518 ₹ | DMA 200 | 504 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 0.06 % | PAT Qtr | 163 Cr. | PAT Prev Qtr | 240 Cr. |
| RSI | 50.9 | MACD | 5.13 | Volume | 4,43,383 | Avg Vol 1Wk | 5,09,076 |
| Low price | 397 ₹ | High price | 640 ₹ | PEG Ratio | -6.71 | Debt to equity | 0.23 |
| 52w Index | 52.9 % | Qtr Profit Var | -13.8 % | EPS | 25.7 ₹ | Industry PE | 20.1 |
📊 Chart & Trend Analysis: SARDAEN is trading at ₹525, slightly above both its 50 DMA (₹518) and 200 DMA (₹504), indicating mild bullish momentum. RSI at 50.9 suggests neutral strength. MACD at 5.13 confirms positive crossover, hinting at short-term upward bias. Bollinger Bands show price near the mid-range, signaling consolidation with potential breakout.
📈 Volume Trends: Current volume (4,43,383) is below the 1-week average (5,09,076), showing reduced participation and mild caution among traders.
🔑 Momentum Signals: Short-term momentum is moderately positive, with support around ₹510–₹515 and resistance near ₹540–₹550.
💰 Entry Zone: ₹510–₹520 (near 50 DMA support).
📉 Exit Zone: ₹540–₹550 (resistance near upper trendline).
📌 Trend Status: The stock is consolidating with bullish bias, showing potential for continuation if volumes improve.
Positive
- EPS of ₹25.7 with consistent profitability.
- ROCE at 16.6% and ROE at 12.9% indicate healthy efficiency.
- Debt-to-equity ratio at 0.23, showing manageable leverage.
Limitation
- PEG ratio of -6.71 suggests weak growth prospects.
- Volume below average, showing limited buying interest.
- Valuation in line with industry PE, limiting upside premium.
Company Negative News
- PAT declined from ₹240 Cr. to ₹163 Cr. quarter-on-quarter (-13.8%).
- FII holdings decreased by 0.60%, showing reduced foreign investor confidence.
Company Positive News
- Stock trading above both 50 DMA and 200 DMA, signaling strength.
- DII holdings increased slightly (+0.06%), showing domestic support.
- Stock delivered 52.9% return over the past year.
Industry
- Industry PE at 20.1, close to SARDAEN’s P/E of 20.5, showing fair valuation.
- Steel and metals sector remains cyclical but benefits from infrastructure demand.
Conclusion
⚖️ SARDAEN is consolidating with bullish undertones, supported by positive MACD and trading above key moving averages. Optimal strategy: accumulate near ₹510–₹520 support and consider profit booking around ₹540–₹550 resistance. Long-term investors should monitor profit growth trends and FII participation, but fundamentals remain stable with efficient ROCE and ROE.