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SOBHA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | SOBHA | Market Cap | 14,660 Cr. | Current Price | 1,371 ₹ | High / Low | 1,732 ₹ |
| Stock P/E | 48.7 | Book Value | 439 ₹ | Dividend Yield | 0.22 % | ROCE | 9.55 % |
| ROE | 6.61 % | Face Value | 10.0 ₹ | DMA 50 | 1,379 ₹ | DMA 200 | 1,430 ₹ |
| Chg in FII Hold | -0.03 % | Chg in DII Hold | 0.32 % | PAT Qtr | 121 Cr. | PAT Prev Qtr | 30.7 Cr. |
| RSI | 48.0 | MACD | 7.10 | Volume | 42,732 | Avg Vol 1Wk | 71,282 |
| Low price | 1,130 ₹ | High price | 1,732 ₹ | PEG Ratio | 1.04 | Debt to equity | 0.22 |
| 52w Index | 40.0 % | Qtr Profit Var | 142 % | EPS | 28.2 ₹ | Industry PE | 26.6 |
📈 Chart & Trend Analysis
- Moving Averages: Current price (₹1,371) is slightly below 50 DMA (₹1,379) and 200 DMA (₹1,430), showing mild weakness.
- RSI: At 48.0, the stock is neutral, leaning toward weakness.
- MACD: Positive (7.10), suggesting mild bullish momentum.
- Bollinger Bands: Price is near the mid-band, indicating consolidation.
- Volume Trends: Current volume (42,732) is below 1-week average (71,282), showing weaker participation.
📊 Momentum & Signals
- Short-term momentum: Neutral, with MACD positive but RSI weak.
- Support Zone: ₹1,350 – ₹1,365 (near-term support).
- Resistance Zone: ₹1,390 – ₹1,410 (trendline and psychological barrier).
- Entry Zone: ₹1,355 – ₹1,370 (near support, cautious entry).
- Exit Zone: ₹1,390 – ₹1,410 (resistance levels).
📉 Trend Status
The stock is currently in a consolidation phase with neutral RSI and modest MACD strength. Sustained move above ₹1,410 could confirm reversal into an uptrend, while failure to hold ₹1,350 may trigger downside.
✅ Positive
- Book value at ₹439 provides valuation support.
- Quarterly PAT improved significantly (₹121 Cr vs ₹30.7 Cr), showing earnings recovery.
- EPS of ₹28.2 reflects solid profitability.
- PEG ratio at 1.04 suggests reasonable growth valuation.
⚠️ Limitation
- High P/E ratio (48.7) compared to industry average (26.6), making valuation expensive.
- Weak ROCE (9.55%) and ROE (6.61%), showing modest efficiency.
- Dividend yield is low (0.22%), limiting income appeal.
📰 Company Negative News
- FII holding decreased (-0.03%), showing reduced foreign investor confidence.
🌟 Company Positive News
- DII holding increased (+0.32%), reflecting domestic institutional support.
- Quarterly profit variation (+142%) highlights strong earnings growth.
- 52-week performance (40% index gain) shows investor confidence.
🏦 Industry
- Industry PE at 26.6, much lower than SOBHA’s 48.7, suggesting peers are cheaper.
- Real estate sector benefits from housing demand and infrastructure growth but faces cyclical risks.
📌 Conclusion
SOBHA is in a consolidation phase with modest fundamentals and neutral technical signals. Entry near ₹1,355 – ₹1,370 with exit around ₹1,390 – ₹1,410 is optimal for short-term traders. Long-term investors should weigh strong earnings recovery against high valuations and modest efficiency metrics.