SONACOMS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | SONACOMS | Market Cap | 31,810 Cr. | Current Price | 512 ₹ | High / Low | 560 ₹ |
| Stock P/E | 50.4 | Book Value | 89.7 ₹ | Dividend Yield | 0.63 % | ROCE | 18.3 % |
| ROE | 14.2 % | Face Value | 10.0 ₹ | DMA 50 | 506 ₹ | DMA 200 | 496 ₹ |
| Chg in FII Hold | 0.42 % | Chg in DII Hold | 0.61 % | PAT Qtr | 183 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 50.4 | MACD | -3.04 | Volume | 27,85,707 | Avg Vol 1Wk | 16,31,331 |
| Low price | 380 ₹ | High price | 560 ₹ | PEG Ratio | 2.81 | Debt to equity | 0.03 |
| 52w Index | 73.4 % | Qtr Profit Var | 26.0 % | EPS | 9.50 ₹ | Industry PE | 25.0 |
📊 Chart & Trend Analysis: SONACOMS is trading at ₹512, above both its 50 DMA (₹506) and 200 DMA (₹496), indicating bullish undertones. RSI at 50.4 suggests neutral momentum. MACD at -3.04 shows mild bearish crossover, hinting at short-term weakness. Bollinger Bands show price near the mid-range, signaling consolidation with potential breakout.
📈 Volume Trends: Current volume (27,85,707) is significantly higher than the 1-week average (16,31,331), showing strong participation and accumulation.
🔑 Momentum Signals: Short-term momentum is mixed, with support around ₹500–₹505 and resistance near ₹540–₹550.
💰 Entry Zone: ₹500–₹505 (near 50 DMA support).
📉 Exit Zone: ₹540–₹550 (resistance near recent high).
📌 Trend Status: The stock is consolidating with bullish bias, supported by long-term moving averages but facing short-term resistance.
Positive
- EPS of ₹9.50 with profitability.
- ROCE at 18.3% and ROE at 14.2% indicate strong efficiency.
- Debt-to-equity ratio at 0.03, virtually debt-free.
- FII holdings increased by 0.42% and DII holdings by 0.61%, showing institutional confidence.
- Stock delivered 73.4% return over the past year.
Limitation
- High P/E ratio (50.4) compared to industry average (25.0).
- PEG ratio of 2.81 suggests expensive valuation relative to growth.
- MACD indicates short-term bearish crossover.
Company Negative News
- MACD shows short-term weakness despite strong volumes.
Company Positive News
- PAT improved from ₹168 Cr. to ₹183 Cr. quarter-on-quarter (+26%).
- Trading above both 50 DMA and 200 DMA, signaling strength.
Industry
- Industry PE at 25.0, much lower than SONACOMS’s valuation, showing premium pricing.
- Auto components sector remains cyclical but benefits from global demand recovery.
Conclusion
⚖️ SONACOMS is consolidating with bullish undertones, supported by strong fundamentals and long-term trend. Optimal strategy: accumulate near ₹500–₹505 support and consider profit booking around ₹540–₹550 resistance. Long-term investors should monitor valuation premium, but consistent profit growth and strong ROCE/ROE make it attractive.