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SHREECEM - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.3

Last Updated Time : 03 May 26, 11:25 am

Technical Rating: 3.3

Stock Code SHREECEM Market Cap 87,297 Cr. Current Price 24,195 ₹ High / Low 32,508 ₹
Stock P/E 50.4 Book Value 6,078 ₹ Dividend Yield 0.45 % ROCE 7.17 %
ROE 5.69 % Face Value 10.0 ₹ DMA 50 24,925 ₹ DMA 200 26,690 ₹
Chg in FII Hold -1.13 % Chg in DII Hold 1.20 % PAT Qtr 279 Cr. PAT Prev Qtr 277 Cr.
RSI 44.4 MACD 110 Volume 35,701 Avg Vol 1Wk 28,562
Low price 22,550 ₹ High price 32,508 ₹ PEG Ratio -2.45 Debt to equity 0.09
52w Index 16.5 % Qtr Profit Var 21.4 % EPS 480 ₹ Industry PE 30.8

📊 Chart & Indicators: SHREECEM is trading at ₹24,195, below both 50 DMA (₹24,925) and 200 DMA (₹26,690), showing weak momentum. RSI at 44.4 indicates neutral-to-bearish sentiment, while MACD at 110 shows mild positive divergence. Price is consolidating between support (~₹23,800–₹24,000) and resistance (~₹25,000–₹25,200). Volume (35.7K) is slightly above weekly average (28.5K), suggesting moderate participation.

🎯 Entry/Exit Zones:

- Buy Zone: ₹23,800–₹24,200 (near support)

- Stop-Loss: ₹23,500

- Exit Levels: ₹25,000–₹25,200 (short-term resistance), ₹26,500–₹26,700 (major resistance near 200 DMA)

📈 Trend Status: Consolidating with weak bias; price below moving averages, RSI neutral, and MACD mildly positive. Short-term momentum sideways with potential reversal only if sustained above ₹25,200.

✅ Positive

  • Quarterly PAT stable at ₹279 Cr vs ₹277 Cr
  • EPS strong at ₹480
  • DII holdings increased (+1.20%)
  • Low debt-to-equity ratio (0.09) ensures financial stability

⚠️ Limitation

  • Price below both 50 DMA and 200 DMA, weak technical trend
  • ROE (5.69%) and ROCE (7.17%) remain modest
  • PEG ratio -2.45 indicates poor growth-adjusted valuation
  • High P/E of 50.4 vs Industry PE 30.8 → stretched valuation

📉 Company Negative News

  • Correction from 52-week high (₹32,508 → ₹24,195)
  • FII holdings reduced (-1.13%)
  • Weak profitability metrics compared to peers

📊 Company Positive News

  • Stable quarterly earnings despite sector challenges
  • Dividend yield at 0.45% provides investor support
  • Strong EPS reflects earnings capacity

🏦 Industry

  • Industry PE at 30.8, lower than SHREECEM’s valuation
  • Cement sector demand supported by infrastructure growth
  • Input cost pressures impacting margins across the industry

📝 Conclusion

SHREECEM is consolidating near support with neutral RSI and mild MACD positivity, but weak fundamentals and stretched valuations limit upside. Best suited for cautious swing trades with entry near ₹23,800–₹24,200 and exit around ₹25,000–₹25,200; long-term investors should remain cautious unless ROE/ROCE improve significantly.

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