SKFINDIA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | SKFINDIA | Market Cap | 9,252 Cr. | Current Price | 1,870 ₹ | High / Low | 2,396 ₹ |
| Stock P/E | 23.1 | Book Value | 558 ₹ | Dividend Yield | 0.77 % | ROCE | 28.8 % |
| ROE | 21.4 % | Face Value | 10.0 ₹ | DMA 50 | 1,902 ₹ | DMA 200 | 2,051 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | -0.27 % | PAT Qtr | 41.3 Cr. | PAT Prev Qtr | 46.7 Cr. |
| RSI | 51.2 | MACD | -7.24 | Volume | 34,891 | Avg Vol 1Wk | 71,809 |
| Low price | 1,652 ₹ | High price | 2,396 ₹ | PEG Ratio | 1.82 | Debt to equity | 0.00 |
| 52w Index | 29.3 % | Qtr Profit Var | -2.04 % | EPS | 109 ₹ | Industry PE | 49.5 |
📊 Chart Patterns: SKFINDIA is trading at 1,870 ₹, slightly below its 50 DMA (1,902 ₹) and well below its 200 DMA (2,051 ₹). This indicates short-term weakness and medium-term bearish bias. The price is closer to its 52-week low (1,652 ₹) than its high (2,396 ₹), reflecting corrective pressure.
📉 RSI: At 51.2, RSI is neutral, suggesting balanced momentum without strong bullish or bearish signals.
📉 MACD: Negative at -7.24, confirming bearish crossover and downward momentum.
📊 Bollinger Bands: Price is near the mid-band, indicating consolidation with limited volatility.
📉 Volume Trends: Current volume (34k) is significantly lower than average weekly volume (71k), showing weak participation and lack of strong buying interest.
📌 Momentum Signals: Neutral RSI with bearish MACD suggests consolidation with mild downward bias.
🎯 Entry Zone: 1,850–1,870 ₹ (near support levels).
🎯 Exit Zone: 1,900–1,950 ₹ (near 50 DMA resistance).
📉 Trend: The stock is consolidating with bearish bias, not yet showing reversal signs.
Positive
- 📈 EPS at 109 ₹, showing strong earnings power.
- 📊 ROE at 21.4% and ROCE at 28.8% indicate excellent efficiency.
- 📈 Debt-free balance sheet (Debt-to-equity 0.00) enhances financial stability.
- 📊 Dividend yield of 0.77% adds investor appeal.
Limitation
- ⚠️ Trading below both 50 DMA and 200 DMA, showing technical weakness.
- ⚠️ PEG ratio at 1.82 indicates expensive growth prospects.
- ⚠️ Weak volume participation limits momentum strength.
- ⚠️ DII holdings decreased (-0.27%), showing reduced domestic institutional confidence.
Company Negative News
- 📉 Quarterly PAT declined from 46.7 Cr. to 41.3 Cr. (-2.04%).
- 📉 Stock trading near lower end of 52-week range (29.3% index), reflecting weakness.
Company Positive News
- 📈 EPS remains strong despite profit decline.
- 📈 FII stake increased (+0.03%), reflecting marginal foreign investor optimism.
- 📈 Debt-free balance sheet supports long-term growth stability.
Industry
- 🏭 Industry PE at 49.5, much higher than SKFINDIA’s PE (23.1), suggesting undervaluation relative to peers.
- 📊 Manufacturing and engineering sector showing steady demand growth with industrial expansion tailwinds.
Conclusion
🔎 SKFINDIA is consolidating with bearish bias, trading below key moving averages. Technical indicators (neutral RSI, bearish MACD, weak volume) suggest caution, though strong fundamentals and undervaluation relative to industry peers provide long-term appeal. Entry near 1,850–1,870 ₹ with exit around 1,900–1,950 ₹ is optimal for traders. Long-term investors may find value in strong efficiency ratios and debt-free status despite near-term weakness.