⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SONACOMS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | SONACOMS | Market Cap | 36,933 Cr. | Current Price | 594 ₹ | High / Low | 616 ₹ |
| Stock P/E | 53.9 | Book Value | 93.9 ₹ | Dividend Yield | 0.57 % | ROCE | 15.8 % |
| ROE | 12.2 % | Face Value | 10.0 ₹ | DMA 50 | 559 ₹ | DMA 200 | 519 ₹ |
| Chg in FII Hold | -0.19 % | Chg in DII Hold | 0.72 % | PAT Qtr | 207 Cr. | PAT Prev Qtr | 183 Cr. |
| RSI | 57.6 | MACD | 8.11 | Volume | 25,39,195 | Avg Vol 1Wk | 15,12,229 |
| Low price | 402 ₹ | High price | 616 ₹ | PEG Ratio | 2.55 | Debt to equity | 0.06 |
| 52w Index | 89.6 % | Qtr Profit Var | 34.8 % | EPS | 10.4 ₹ | Industry PE | 27.0 |
📈 Chart & Trend Analysis
- Moving Averages: Current price (₹594) is above both 50 DMA (₹559) and 200 DMA (₹519), confirming bullish momentum.
- RSI: At 57.6, the stock is moderately strong, not overbought.
- MACD: Positive (8.11), indicating bullish momentum continuation.
- Bollinger Bands: Price is near the upper band, suggesting buying pressure with potential short-term resistance.
- Volume Trends: Current volume (25,39,195) is above 1-week average (15,12,229), showing strong participation.
📊 Momentum & Signals
- Short-term momentum: Positive, supported by MACD and price above moving averages.
- Support Zone: ₹585 – ₹590 (near-term support).
- Resistance Zone: ₹610 – ₹616 (recent highs and psychological barrier).
- Entry Zone: ₹588 – ₹595 (near support, bullish bias).
- Exit Zone: ₹610 – ₹616 (resistance levels).
📉 Trend Status
The stock is currently in an uptrend with bullish signals from MACD and price above moving averages. A breakout above ₹616 could extend the rally further.
✅ Positive
- Strong ROCE (15.8%) and ROE (12.2%) indicate efficient capital use.
- Low debt-to-equity ratio (0.06), showing financial stability.
- Quarterly PAT growth (₹207 Cr vs ₹183 Cr) supports earnings momentum.
- EPS of ₹10.4 reflects profitability.
- Strong 52-week performance (89.6% index gain).
⚠️ Limitation
- High P/E ratio (53.9) compared to industry average (27.0), making valuation expensive.
- PEG ratio at 2.55, suggesting costly growth valuation.
- Dividend yield is modest (0.57%), limiting income appeal.
📰 Company Negative News
- FII holding decreased (-0.19%), showing reduced foreign investor confidence.
🌟 Company Positive News
- DII holding increased (+0.72%), reflecting strong domestic institutional support.
- Quarterly profit variation (+34.8%) highlights earnings growth.
🏦 Industry
- Industry PE at 27.0, much lower than SONACOMS’s 53.9, suggesting peers are cheaper.
- Auto components sector benefits from global demand recovery and industrial expansion.
📌 Conclusion
SONACOMS is in a bullish uptrend with strong fundamentals and technical signals. Entry near ₹588 – ₹595 with exit around ₹610 – ₹616 is optimal for short-term traders. Long-term investors should weigh strong earnings growth and low debt against high valuations and modest dividend yield.