⚠ 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.
SIGNATURE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.8
| Stock Code | SIGNATURE | Market Cap | 12,634 Cr. | Current Price | 899 ₹ | High / Low | 1,340 ₹ |
| Stock P/E | 190 | Book Value | 66.1 ₹ | Dividend Yield | 0.00 % | ROCE | 9.40 % |
| ROE | 6.69 % | Face Value | 1.00 ₹ | DMA 50 | 1,012 ₹ | DMA 200 | 1,108 ₹ |
| Chg in FII Hold | -0.46 % | Chg in DII Hold | -0.35 % | PAT Qtr | -26.5 Cr. | PAT Prev Qtr | 13.0 Cr. |
| RSI | 37.2 | MACD | -61.2 | Volume | 3,36,335 | Avg Vol 1Wk | 16,47,099 |
| Low price | 774 ₹ | High price | 1,340 ₹ | PEG Ratio | 4.53 | Debt to equity | 2.31 |
| 52w Index | 22.0 % | Qtr Profit Var | -560 % | EPS | 4.73 ₹ | Industry PE | 30.2 |
📊 Technical Analysis
- Chart Patterns: Stock is trading well below both 50 DMA (1,012 ₹) and 200 DMA (1,108 ₹), showing strong bearish trend.
- Moving Averages: Current price (899 ₹) under both averages → bearish setup.
- RSI: 37.2 → approaching oversold zone, suggesting limited downside but weak momentum.
- MACD: -61.2 → strong bearish crossover, confirming downward pressure.
- Bollinger Bands: Price near lower band, oversold condition may trigger short-term bounce.
- Volume Trends: Current volume (3.36 lakh) significantly below 1-week average (16.47 lakh), showing weak participation.
📈 Momentum & Signals
- Short-term Momentum: Weak, with bearish bias but oversold indicators suggest possible rebound.
- Entry Zone: 880–900 ₹ (near support at 774 ₹).
- Exit Zone: 1,000–1,020 ₹ (near 50 DMA resistance).
- Trend Status: Strongly bearish; reversal possible only if price sustains above 1,012 ₹.
✅ Positive
- EPS of 4.73 ₹ provides some earnings visibility.
- 52-week index performance at 22% shows resilience compared to broader market despite weakness.
⚠️ Limitation
- Extremely high P/E of 190 compared to industry PE of 30.2.
- High debt-to-equity ratio of 2.31 indicates significant leverage risk.
- Dividend yield of 0.00% limits income appeal.
- ROCE (9.40%) and ROE (6.69%) are modest, showing weak capital efficiency.
📉 Company Negative News
- PAT turned negative (-26.5 Cr. vs 13.0 Cr. previous quarter).
- Quarterly profit variation shows steep decline (-560%).
- FII holdings decreased by -0.46% and DII holdings decreased by -0.35%, showing reduced institutional confidence.
📈 Company Positive News
- Stock trading near oversold levels, offering potential rebound opportunities for short-term traders.
- Strong 52-week performance (+22%) compared to market index.
🏭 Industry
- Industry PE at 30.2, much lower than SIGNATURE’s 190, suggesting sector peers may be more attractively valued.
- Consumer and specialty sector remains growth-oriented but faces margin pressures.
🔎 Conclusion
- SIGNATURE is in a strong downtrend with bearish signals from DMA, RSI, and MACD.
- Short-term traders may consider entry around 880–900 ₹ with exit near 1,000–1,020 ₹, but risk remains high.
- Long-term investors should be cautious due to high valuation, weak profitability, and high leverage despite occasional technical rebounds.