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SOLARINDS - Technical Analysis with Chart Patterns & Indicators

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Rating: 4.2

Last Updated Time : 02 Feb 26, 09:58 am

Technical Rating: 4.2

Stock Code SOLARINDS Market Cap 1,19,470 Cr. Current Price 13,198 ₹ High / Low 17,820 ₹
Stock P/E 126 Book Value 387 ₹ Dividend Yield 0.08 % ROCE 37.3 %
ROE 29.7 % Face Value 2.00 ₹ DMA 50 12,996 ₹ DMA 200 13,194 ₹
Chg in FII Hold -0.37 % Chg in DII Hold 0.01 % PAT Qtr 235 Cr. PAT Prev Qtr 280 Cr.
RSI 53.6 MACD 153 Volume 3,37,641 Avg Vol 1Wk 2,61,793
Low price 8,479 ₹ High price 17,820 ₹ PEG Ratio 2.78 Debt to equity 0.05
52w Index 50.5 % Qtr Profit Var 32.4 % EPS 105 ₹ Industry PE 22.9

📊 Technical Analysis

  • Chart Patterns: Stock is trading slightly above 50 DMA (12,996 ₹) and near 200 DMA (13,194 ₹), showing consolidation with bullish bias.
  • Moving Averages: Current price (13,198 ₹) above both averages → bullish setup.
  • RSI: 53.6 → mid-range, suggesting healthy momentum without being overbought.
  • MACD: 153 → strong positive crossover, confirming bullish momentum.
  • Bollinger Bands: Price near upper band, showing strong momentum but caution for short-term pullback.
  • Volume Trends: Current volume (3.37 lakh) above 1-week average (2.61 lakh), showing strong participation.

📈 Momentum & Signals

  • Short-term Momentum: Strong, with bullish bias supported by MACD and price above moving averages.
  • Entry Zone: 13,000–13,200 ₹ (near DMA support).
  • Exit Zone: 13,600–13,800 ₹ (near resistance zone).
  • Trend Status: Trending upward; consolidation possible near 13,800 ₹ resistance.

✅ Positive

  • Strong ROCE (37.3%) and ROE (29.7%) indicate excellent capital efficiency.
  • EPS of 105 ₹ reflects robust earnings base.
  • Debt-to-equity ratio of 0.05 shows negligible leverage risk.
  • Quarterly profit variation (+32.4%) highlights strong growth momentum.

⚠️ Limitation

  • High P/E of 126 compared to industry PE of 22.9.
  • Dividend yield of 0.08% is very low, limiting income appeal.
  • PEG ratio of 2.78 suggests expensive valuation relative to growth.

📉 Company Negative News

  • PAT declined sequentially from 280 Cr. to 235 Cr.
  • FII holdings decreased by -0.37%, showing reduced foreign investor confidence.

📈 Company Positive News

  • Quarterly profit variation (+32.4%) shows strong year-on-year growth.
  • DII holdings increased slightly (+0.01%), showing domestic support.
  • 52-week index performance at 50.5% highlights resilience compared to broader market.

🏭 Industry

  • Industry PE at 22.9, much lower than SOLARINDS’s 126, suggesting sector peers may be more attractively valued.
  • Defense and industrial explosives sector remains growth-oriented with infrastructure and defense demand.

🔎 Conclusion

  • SOLARINDS is trending upward with strong bullish signals from DMA, RSI, and MACD.
  • Short-term traders may consider entry around 13,000–13,200 ₹ with exit near 13,600–13,800 ₹.
  • Long-term investors should be cautious due to high valuation despite strong profitability, growth momentum, and negligible debt.

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