SIGNATURE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | SIGNATURE | Market Cap | 11,219 Cr. | Current Price | 797 ₹ | High / Low | 1,310 ₹ |
| Stock P/E | 446 | Book Value | 66.1 ₹ | Dividend Yield | 0.00 % | ROCE | 9.40 % |
| ROE | 6.69 % | Face Value | 1.00 ₹ | DMA 50 | 938 ₹ | DMA 200 | 1,057 ₹ |
| Chg in FII Hold | -0.46 % | Chg in DII Hold | -0.35 % | PAT Qtr | -13.5 Cr. | PAT Prev Qtr | -26.5 Cr. |
| RSI | 31.9 | MACD | -45.8 | Volume | 4,69,445 | Avg Vol 1Wk | 4,57,981 |
| Low price | 767 ₹ | High price | 1,310 ₹ | PEG Ratio | 10.6 | Debt to equity | 2.31 |
| 52w Index | 5.48 % | Qtr Profit Var | -149 % | EPS | 1.79 ₹ | Industry PE | 25.5 |
📊 Chart & Trend Analysis: SIGNATURE is trading at ₹797, well below its 50 DMA (₹938) and 200 DMA (₹1,057), indicating strong bearish momentum. RSI at 31.9 suggests oversold territory. MACD at -45.8 confirms negative crossover. Bollinger Bands show price near the lower band, signaling weakness with potential support around ₹770–₹780.
📈 Volume Trends: Current volume (4,69,445) is slightly above the 1-week average (4,57,981), showing steady participation but no strong buying interest.
🔑 Momentum Signals: Short-term momentum is weak, with support around ₹770–₹780 and resistance near ₹930–₹950.
💰 Entry Zone: ₹770–₹780 (near support).
📉 Exit Zone: ₹930–₹950 (resistance near 50 DMA).
📌 Trend Status: The stock is reversing downward with bearish bias, showing no clear signs of recovery yet.
Positive
- EPS of ₹1.79, maintaining profitability despite challenges.
- ROCE at 9.40% and ROE at 6.69% show moderate efficiency.
- Dividend yield at 0.57% provides some investor return.
Limitation
- Extremely high P/E ratio (446) compared to industry average (25.5).
- High debt-to-equity ratio of 2.31, indicating leveraged balance sheet.
- PEG ratio of 10.6 suggests expensive valuation relative to growth.
Company Negative News
- PAT remained negative, with losses of ₹-13.5 Cr. vs ₹-26.5 Cr. in the previous quarter.
- Quarterly profit variation at -149%, showing instability.
- FII holdings decreased by 0.46% and DII holdings by 0.35%, reflecting reduced institutional confidence.
Company Positive News
- Losses narrowed compared to the previous quarter.
- Stock has delivered 5.48% return over the past year despite volatility.
Industry
- Industry PE at 25.5, much lower than SIGNATURE’s valuation, showing heavy premium pricing.
- Consumer and retail sector remains competitive but cyclical.
Conclusion
⚖️ SIGNATURE is reversing downward with bearish undertones, trading well below key moving averages. Optimal strategy: accumulate cautiously near ₹770–₹780 support and consider profit booking around ₹930–₹950 resistance. Long-term investors should be cautious due to high debt, extreme valuation, and ongoing losses, despite slight improvement in quarterly results.