SOBHA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.5

📈 Chart & Trend Analysis:

SOBHA is trading at ₹1,453, below both its 50 DMA (₹1,520) and 200 DMA (₹1,501), indicating short-term weakness. RSI at 40.4 suggests the stock is approaching oversold territory, hinting at potential rebound opportunities. MACD at -33.4 is negative, confirming bearish momentum. Price is mid-range between its 52-week high (₹1,732) and low (₹1,075). Bollinger Bands show price leaning toward the lower band, reflecting downside pressure. Current volume (88k) is below the weekly average (1.29 lakh), suggesting reduced participation.

🔑 Momentum Signals:

- RSI near 40 indicates weak momentum, potential for rebound if support holds.

- MACD negative, confirming bearish undertone.

- Price below both DMAs signals short-term weakness.

- Lower-than-average volume shows cautious sentiment.

🎯 Entry & Exit Zones:

- Support: ₹1,420 – ₹1,430 (near current levels).

- Resistance: ₹1,500 – ₹1,520 (near 200 & 50 DMA).

- Optimal Entry: ₹1,420 – ₹1,450 range for rebound trades.

- Exit/Profit Booking: ₹1,500 – ₹1,520 unless breakout occurs.

📊 Trend Status:

The stock is consolidating with bearish undertones. A breakout above ₹1,520 could confirm trend reversal, while failure may lead to sideways movement.

Positive

• EPS at ₹21.2 reflects earnings strength.
• Quarterly PAT improved to ₹104 Cr from ₹45.9 Cr.
• Quarterly profit variation at 305% YoY shows strong growth momentum.
• DII holdings increased (+1.42%), showing domestic investor confidence.
• Low debt-to-equity ratio (0.23) ensures financial stability.

Limitation

• Price trading below both 50 DMA and 200 DMA.
• MACD negative, signaling bearish momentum.
• High P/E ratio (68.4) compared to industry average (33.7).
• PEG ratio at -8.66 indicates valuation concerns.
• ROCE (6.98%) and ROE (3.31%) are modest compared to peers.

Company Negative News

• FII holdings reduced (-1.68%), showing weaker foreign investor confidence.
• Volume below average, reflecting reduced market participation.

Company Positive News

• DII holdings increased (+1.42%), reflecting domestic investor support.
• Quarterly PAT growth shows strong operational improvement.
• Stock trading well above its 52-week low (₹1,075), showing resilience despite correction.

Industry

• Industry P/E at 33.7, SOBHA trades at a premium valuation (P/E 68.4).
• Real estate sector showing cyclical demand recovery.
• Peers trade at lower multiples, making SOBHA relatively expensive but backed by profit growth momentum.

Conclusion

⚖️ SOBHA is consolidating with bearish undertones. Entry near ₹1,420–₹1,450 may be considered for rebound trades, while resistance at ₹1,500–₹1,520 is critical for trend reversal. Strong profit growth and domestic investor support back medium-term stability, but weak technicals and stretched valuations warrant cautious positioning.