SBFC - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.2

📊 Chart Patterns: SBFC is trading below its 50 DMA (108 ₹) but slightly above its 200 DMA (105 ₹). Current price (104 ₹) reflects short-term weakness, with the stock consolidating after a decline from its recent high (123 ₹). The broader pattern shows sideways consolidation with bearish bias.

📈 Moving Averages: Price < 50 DMA but ≈ 200 DMA → neutral to mildly bearish alignment, suggesting indecision in short-term trend.

📉 RSI: 36.4 → weak momentum, close to oversold territory, suggesting possible rebound if support holds.

📉 MACD: -1.53 → bearish crossover, confirming short-term weakness.

📊 Bollinger Bands: Price near lower band, indicating oversold conditions but also risk of further downside.

📊 Volume Trends: Current volume (9,97,777) is significantly lower than 1-week average (22,29,902) → weak participation, showing lack of strong buying interest.

📍 Support Levels: 102 ₹, 98 ₹, and strong base near 79.2 ₹ (52-week low).

📍 Resistance Levels: 108 ₹ (DMA 50), 115 ₹, and 123 ₹ (recent high).

🔎 Trend: The stock is consolidating between 102–108 ₹. A breakdown below 102 ₹ could trigger reversal toward 98–79 ₹, while a breakout above 108–115 ₹ may lead to short-term recovery momentum.

Positive

• 📈 PAT improved sequentially from 101 Cr. to 109 Cr.
• 📊 EPS at 3.61 ₹ supports earnings strength.
• 📊 ROCE (11.6%) and ROE (11.6%) show balanced capital efficiency.
• 📊 PEG ratio (0.39) suggests undervaluation relative to growth potential.
• 📊 DII holdings increased (+1.22%), showing strong domestic investor confidence.

Limitation

• ⚠️ Price trading below 50 DMA → short-term weakness.
• ⚠️ RSI weak and MACD negative, limiting upside potential.
• ⚠️ Dividend yield at 0.00% → no income support for investors.
• ⚠️ Debt-to-equity ratio at 1.80 indicates high leverage risk.

Company Negative News

• 📉 FII holdings declined (–0.11%), showing reduced foreign investor confidence.
• 📉 Technical indicators (MACD negative, RSI weak) confirm bearish momentum.

Company Positive News

• 📈 Quarterly profit growth (+30% YoY).
• 📊 Strong domestic institutional support (+1.22% DII holdings).
• 📊 PEG ratio indicates attractive valuation relative to growth.

Industry

• 🏦 NBFC sector PE at 21.2, lower than SBFC’s PE (29.2), suggesting valuation premium.
• 📊 Industry supported by credit demand growth, though facing margin pressures due to high leverage.

Conclusion

🔎 SBFC is consolidating with bearish short-term signals (RSI weak, MACD negative, price below 50 DMA). Optimal entry zone lies near 102–104 ₹ if support holds, while exit/resistance zone is 108–115 ₹. Long-term investors may find value in growth potential and PEG ratio, but short-term traders should remain cautious until a clear breakout above 108–115 ₹ confirms recovery momentum.