SOBHA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | SOBHA | Market Cap | 13,832 Cr. | Current Price | 1,294 ₹ | High / Low | 1,732 ₹ |
| Stock P/E | 60.0 | Book Value | 424 ₹ | Dividend Yield | 0.23 % | ROCE | 6.98 % |
| ROE | 3.31 % | Face Value | 10.0 ₹ | DMA 50 | 1,419 ₹ | DMA 200 | 1,472 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | -0.26 % | PAT Qtr | 30.7 Cr. | PAT Prev Qtr | 104 Cr. |
| RSI | 38.2 | MACD | -50.5 | Volume | 99,981 | Avg Vol 1Wk | 1,58,901 |
| Low price | 1,075 ₹ | High price | 1,732 ₹ | PEG Ratio | -7.60 | Debt to equity | 0.23 |
| 52w Index | 33.2 % | Qtr Profit Var | 11.4 % | EPS | 21.6 ₹ | Industry PE | 25.5 |
📊 Chart & Trend Analysis: SOBHA is trading at ₹1,294, below both its 50 DMA (₹1,419) and 200 DMA (₹1,472), indicating bearish momentum. RSI at 38.2 suggests the stock is nearing oversold territory. MACD at -50.5 confirms strong negative crossover. Bollinger Bands show price near the lower band, signaling weakness with potential support around ₹1,075–₹1,100.
📈 Volume Trends: Current volume (99,981) is significantly below the 1-week average (1,58,901), showing weak participation and limited buying interest.
🔑 Momentum Signals: Short-term momentum is weak, with support around ₹1,075–₹1,100 and resistance near ₹1,400–₹1,420.
💰 Entry Zone: ₹1,075–₹1,100 (near support).
📉 Exit Zone: ₹1,400–₹1,420 (resistance near 50 DMA).
📌 Trend Status: The stock is consolidating with bearish bias, showing no clear reversal signs yet.
Positive
- EPS of ₹21.6 with profitability.
- Book value of ₹424 provides strong asset backing.
- Debt-to-equity ratio at 0.23, showing low leverage.
- Stock delivered 33.2% return over the past year.
Limitation
- High P/E ratio (60.0) compared to industry average (25.5).
- PEG ratio of -7.60 suggests weak growth prospects.
- ROCE (6.98%) and ROE (3.31%) are modest compared to peers.
Company Negative News
- PAT declined sharply from ₹104 Cr. to ₹30.7 Cr. quarter-on-quarter.
- FII holdings decreased by 0.15% and DII holdings by 0.26%, showing reduced institutional confidence.
Company Positive News
- Quarterly profit variation improved by 11.4% YoY.
- Strong book value supports long-term fundamentals.
Industry
- Industry PE at 25.5, much lower than SOBHA’s valuation, showing premium pricing.
- Real estate sector remains cyclical but benefits from urban housing demand.
Conclusion
⚖️ SOBHA is consolidating with bearish undertones, trading below key moving averages. Optimal strategy: accumulate cautiously near ₹1,075–₹1,100 support and consider profit booking around ₹1,400–₹1,420 resistance. Long-term investors should monitor valuation premium and weak ROE/ROCE, but fundamentals remain supported by strong book value and moderate debt levels.