SONACOMS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📈 Chart & Trend Analysis:

SONACOMS is trading at ₹497, above both its 50 DMA (₹482) and 200 DMA (₹492), indicating short-term strength. RSI at 48.6 suggests neutral momentum, neither overbought nor oversold. MACD at 0.03 is slightly positive, confirming mild bullish undertone. Price is mid-range between its 52-week high (₹614) and low (₹380). Bollinger Bands suggest moderate volatility, with price stabilizing near the middle band. Current volume (13.9 lakh) is higher than the weekly average (10.3 lakh), showing strong participation.

🔑 Momentum Signals:

- RSI near 49 indicates balanced momentum.

- MACD positive, confirming mild bullish continuation.

- Price above both DMAs signals short-term strength.

- Elevated volume supports accumulation and trend stability.

🎯 Entry & Exit Zones:

- Support: ₹482 – ₹490 (near 50 & 200 DMA).

- Resistance: ₹510 – ₹520 (short-term ceiling).

- Optimal Entry: ₹490 – ₹495 range on dips.

- Exit/Profit Booking: ₹510 – ₹520 unless breakout occurs.

📊 Trend Status:

The stock is consolidating with bullish undertones. Sustained momentum above ₹520 could trigger a breakout, while failure may lead to sideways movement.

Positive

• Price trading above both 50 DMA and 200 DMA.
• Quarterly PAT improved to ₹168 Cr from ₹127 Cr.
• Quarterly profit variation at 19.2% YoY shows growth momentum.
• DII holdings increased (+5.53%), reflecting strong domestic investor confidence.
• Low debt-to-equity ratio (0.03) ensures financial stability.

Limitation

• High P/E ratio (52.0) compared to industry average (30.0).
• PEG ratio at 2.90 indicates expensive valuation relative to growth.
• Dividend yield at 0.65% is modest.

Company Negative News

• FII holdings reduced significantly (-6.28%), showing weaker foreign investor confidence.

Company Positive News

• DII holdings increased (+5.53%), showing strong domestic investor support.
• Quarterly PAT growth highlights improving profitability.
• Stock trading well above its 52-week low (₹380), showing resilience despite correction.

Industry

• Industry P/E at 30.0, SONACOMS trades at a premium valuation (P/E 52.0).
• Auto components sector showing cyclical demand recovery.
• Peers trade at lower multiples, making SONACOMS relatively expensive but backed by growth momentum.

Conclusion

⚖️ SONACOMS is consolidating with bullish undertones. Entry near ₹490–₹495 offers favorable risk-reward, while resistance at ₹510–₹520 is critical for breakout confirmation. Strong fundamentals and domestic investor support back medium-term stability, but stretched valuations and reduced FII confidence warrant cautious positioning.