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SHREECEM - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.5

Last Updated Time : 02 Feb 26, 09:58 am

Technical Rating: 3.5

Stock Code SHREECEM Market Cap 95,205 Cr. Current Price 26,385 ₹ High / Low 32,508 ₹
Stock P/E 56.6 Book Value 6,078 ₹ Dividend Yield 0.42 % ROCE 7.17 %
ROE 5.69 % Face Value 10.0 ₹ DMA 50 27,096 ₹ DMA 200 28,095 ₹
Chg in FII Hold -0.27 % Chg in DII Hold 0.19 % PAT Qtr 277 Cr. PAT Prev Qtr 619 Cr.
RSI 40.9 MACD 53.5 Volume 26,630 Avg Vol 1Wk 29,842
Low price 25,360 ₹ High price 32,508 ₹ PEG Ratio -2.75 Debt to equity 0.09
52w Index 14.3 % Qtr Profit Var 198 % EPS 466 ₹ Industry PE 30.0

📊 Technical Analysis

  • Chart Patterns: Stock is trading below both 50 DMA (27,096 ₹) and 200 DMA (28,095 ₹), showing weakness and a bearish bias.
  • Moving Averages: Current price (26,385 ₹) under both averages → bearish setup.
  • RSI: 40.9 → weak momentum, approaching oversold territory.
  • MACD: 53.5 → positive reading, suggesting potential divergence and short-term recovery signals despite overall weakness.
  • Bollinger Bands: Price near lower band, oversold condition may trigger short-term bounce.
  • Volume Trends: Current volume (26,630) slightly below 1-week average (29,842), showing reduced participation.

📈 Momentum & Signals

  • Short-term Momentum: Weak, with bearish bias but MACD suggests possible rebound.
  • Entry Zone: 25,800–26,400 ₹ (near support at 25,360 ₹).
  • Exit Zone: 27,000–27,200 ₹ (near 50 DMA resistance).
  • Trend Status: Consolidating with bearish tilt; reversal possible only if price sustains above 27,096 ₹.

✅ Positive

  • EPS of 466 ₹ reflects strong earnings base.
  • Debt-to-equity ratio of 0.09 shows negligible leverage risk.
  • DII holdings increased by 0.19%, showing domestic institutional support.
  • Quarterly profit variation (+198%) indicates strong year-on-year growth.

⚠️ Limitation

  • High P/E of 56.6 compared to industry PE of 30.0.
  • ROCE (7.17%) and ROE (5.69%) are weak, showing poor capital efficiency.
  • Dividend yield of 0.42% is modest, limiting income appeal.

📉 Company Negative News

  • PAT declined sharply from 619 Cr. to 277 Cr. sequentially.
  • FII holdings decreased by -0.27%, showing reduced foreign investor confidence.

📈 Company Positive News

  • EPS remains strong at 466 ₹.
  • Quarterly profit variation (+198%) highlights long-term growth momentum despite sequential decline.
  • Low debt-to-equity ratio provides financial stability.

🏭 Industry

  • Industry PE at 30.0, much lower than SHREECEM’s 56.6, suggesting sector peers may be more attractively valued.
  • Cement sector remains cyclical but supported by infrastructure and housing demand.

🔎 Conclusion

  • SHREECEM is consolidating near support levels with mixed signals: bearish DMA and RSI, but positive MACD divergence.
  • Short-term traders may consider entry around 25,800–26,400 ₹ with exit near 27,000–27,200 ₹.
  • Long-term investors should be cautious due to high valuation and weak efficiency metrics despite strong EPS and low debt.

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