⚠ 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: 3.6
| Stock Code | SARDAEN | Market Cap | 16,664 Cr. | Current Price | 472 ₹ | High / Low | 640 ₹ |
| Stock P/E | 17.9 | Book Value | 181 ₹ | Dividend Yield | 0.32 % | ROCE | 16.6 % |
| ROE | 12.9 % | Face Value | 1.00 ₹ | DMA 50 | 498 ₹ | DMA 200 | 497 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 0.06 % | PAT Qtr | 240 Cr. | PAT Prev Qtr | 386 Cr. |
| RSI | 42.6 | MACD | -7.43 | Volume | 1,46,936 | Avg Vol 1Wk | 2,53,125 |
| Low price | 397 ₹ | High price | 640 ₹ | PEG Ratio | -5.87 | Debt to equity | 0.23 |
| 52w Index | 31.2 % | Qtr Profit Var | 95.5 % | EPS | 26.4 ₹ | Industry PE | 20.7 |
📊 Technical Analysis
- Chart Patterns: Stock is trading below both 50 DMA (498 ₹) and 200 DMA (497 ₹), showing weakness and consolidation near support.
- Moving Averages: Current price (472 ₹) under both averages → bearish bias.
- RSI: 42.6 → weak momentum, closer to oversold but not extreme.
- MACD: -7.43 → bearish crossover, confirming downward pressure.
- Bollinger Bands: Price near lower band, oversold condition may trigger short-term bounce.
- Volume Trends: Current volume (1.46 lakh) below 1-week average (2.53 lakh), showing reduced participation.
📈 Momentum & Signals
- Short-term Momentum: Weak, with bearish bias but oversold indicators suggest possible rebound.
- Entry Zone: 465–475 ₹ (near support).
- Exit Zone: 495–505 ₹ (near 50 DMA resistance).
- Trend Status: Consolidating with bearish tilt; reversal possible only if price sustains above 498 ₹.
✅ Positive
- Quarterly profit growth (+95.5%) shows strong earnings momentum.
- EPS of 26.4 ₹ reflects solid profitability.
- Low debt-to-equity ratio of 0.23 indicates financial stability.
- ROCE (16.6%) and ROE (12.9%) are healthy compared to peers.
⚠️ Limitation
- PEG ratio of -5.87 suggests poor growth-adjusted valuation.
- Dividend yield of 0.32% is modest, limiting income appeal.
- Stock trading below both 50 DMA and 200 DMA, showing weak technical strength.
📉 Company Negative News
- PAT declined from 386 Cr. to 240 Cr. sequentially.
- FII holdings decreased by -0.60%, showing reduced foreign investor confidence.
📈 Company Positive News
- Quarterly profit variation shows strong growth (+95.5%).
- DII holdings increased slightly (+0.06%), showing domestic support.
- 52-week index performance at 31.2% shows resilience compared to broader market.
🏭 Industry
- Industry PE at 20.7 is slightly higher than SARDAEN’s 17.9, suggesting the stock is undervalued relative to peers.
- Steel and metals sector remains cyclical but supported by infrastructure demand.
🔎 Conclusion
- SARDAEN is consolidating near support levels with bearish signals from DMA and MACD.
- Short-term traders may consider entry around 465–475 ₹ with exit near 495–505 ₹.
- Long-term investors may find value given strong profitability and undervaluation, but should monitor earnings consistency and foreign investor sentiment.