⚠ 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: 4.0
| Stock Code | SONACOMS | Market Cap | 30,461 Cr. | Current Price | 490 ₹ | High / Low | 560 ₹ |
| Stock P/E | 48.3 | Book Value | 89.7 ₹ | Dividend Yield | 0.65 % | ROCE | 18.3 % |
| ROE | 14.2 % | Face Value | 10.0 ₹ | DMA 50 | 476 ₹ | DMA 200 | 487 ₹ |
| Chg in FII Hold | 0.42 % | Chg in DII Hold | 0.61 % | PAT Qtr | 183 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 57.5 | MACD | 2.47 | Volume | 7,38,842 | Avg Vol 1Wk | 32,29,306 |
| Low price | 380 ₹ | High price | 560 ₹ | PEG Ratio | 2.69 | Debt to equity | 0.03 |
| 52w Index | 61.2 % | Qtr Profit Var | 26.0 % | EPS | 9.50 ₹ | Industry PE | 28.0 |
📊 Technical Analysis
- Chart Patterns: Stock is trading above both 50 DMA (476 ₹) and 200 DMA (487 ₹), showing bullish momentum.
- Moving Averages: Current price (490 ₹) slightly above both averages → bullish setup with support near DMA levels.
- RSI: 57.5 → healthy momentum, not overbought, suggesting room for further upside.
- MACD: 2.47 → positive crossover, confirming bullish trend continuation.
- Bollinger Bands: Price near mid-to-upper band, indicating steady upward momentum.
- Volume Trends: Current volume (7.38 lakh) below 1-week average (32.3 lakh), showing reduced participation despite bullish signals.
📈 Momentum & Signals
- Short-term Momentum: Bullish, supported by MACD and price above moving averages.
- Entry Zone: 480–490 ₹ (near DMA support).
- Exit Zone: 510–520 ₹ (near resistance zone).
- Trend Status: Trending upward; consolidation possible near 520 ₹ resistance.
✅ Positive
- Quarterly PAT growth from 168 Cr. to 183 Cr. (+26%).
- EPS of 9.50 ₹ reflects improving earnings base.
- Low debt-to-equity ratio of 0.03 indicates strong financial stability.
- FII holdings increased by 0.42% and DII holdings increased by 0.61%, showing strong institutional support.
- 52-week index performance at 61.2% highlights strong relative strength.
⚠️ Limitation
- High P/E of 48.3 compared to industry PE of 28.0.
- PEG ratio of 2.69 suggests expensive valuation relative to growth.
- Dividend yield of 0.65% is modest, limiting income appeal.
- Volume participation lower than average, indicating cautious trading activity.
📉 Company Negative News
- Trading volumes have declined compared to weekly averages, showing reduced momentum participation.
📈 Company Positive News
- Quarterly PAT growth (+26%) shows strong earnings improvement.
- Institutional inflows (FII +0.42%, DII +0.61%) indicate confidence in the company.
- Strong 52-week performance (+61.2%) compared to market index.
🏭 Industry
- Industry PE at 28.0, much lower than SONACOMS’s 48.3, suggesting sector peers may be more attractively valued.
- Auto components sector remains cyclical but supported by global demand recovery and EV adoption.
🔎 Conclusion
- SONACOMS is trending upward with bullish signals from DMA, RSI, and MACD.
- Short-term traders may consider entry around 480–490 ₹ with exit near 510–520 ₹.
- Long-term investors should be cautious due to high valuation despite strong profitability, low debt, and institutional support.