SUMICHEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | SUMICHEM | Market Cap | 23,450 Cr. | Current Price | 470 ₹ | High / Low | 665 ₹ |
| Stock P/E | 43.2 | Book Value | 64.0 ₹ | Dividend Yield | 0.26 % | ROCE | 25.1 % |
| ROE | 18.8 % | Face Value | 10.0 ₹ | DMA 50 | 439 ₹ | DMA 200 | 459 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.33 % | PAT Qtr | 86.2 Cr. | PAT Prev Qtr | 178 Cr. |
| RSI | 56.5 | MACD | 10.7 | Volume | 2,26,192 | Avg Vol 1Wk | 3,50,257 |
| Low price | 363 ₹ | High price | 665 ₹ | PEG Ratio | 8.63 | Debt to equity | 0.02 |
| 52w Index | 35.4 % | Qtr Profit Var | 2.27 % | EPS | 10.6 ₹ | Industry PE | 24.4 |
📊 Chart Analysis: SUMICHEM is trading at ₹470, slightly above its 50 DMA (₹439) and 200 DMA (₹459), showing mild bullish bias. RSI at 56.5 indicates neutral-to-positive momentum, not yet overbought. MACD at 10.7 is positive, confirming upward momentum. Bollinger Bands suggest price movement toward the mid-to-upper range, reflecting steady buying interest. Current volume (2.26L) is below the 1-week average (3.50L), showing reduced participation.
📈 Momentum Signals: Short-term momentum is moderately bullish, supported by MACD and price above moving averages. RSI suggests room for further upside before overbought conditions.
💹 Support & Resistance: Strong support lies near ₹439 (50 DMA) and ₹459 (200 DMA). Immediate resistance is at ₹500, with a major resistance at ₹665 (recent high). Optimal entry zone: ₹455–₹465. Exit zone: ₹495–₹510.
🔄 Trend Status: The stock is currently consolidating upward, with potential to trend higher if resistance levels are breached.
Positive
- ✅ Strong ROCE of 25.1% and ROE of 18.8% indicate efficient capital use.
- ✅ Very low debt-to-equity ratio of 0.02 shows financial stability.
- ✅ EPS of ₹10.6 supports valuation strength.
- ✅ Both FII (+0.04%) and DII (+0.33%) holdings increased, reflecting investor confidence.
Limitation
- ⚠️ High P/E of 43.2 compared to industry P/E of 24.4 suggests premium valuation.
- ⚠️ PEG ratio of 8.63 indicates expensive growth expectations.
- ⚠️ Dividend yield of 0.26% is very low.
Company Negative News
- 📉 PAT declined sharply from ₹178 Cr. to ₹86.2 Cr. sequentially.
- 📉 Quarterly profit variation of only 2.27% shows limited near-term earnings growth.
Company Positive News
- 📈 Strong ROCE and ROE highlight operational efficiency.
- 📈 Institutional investors (FII & DII) increased holdings, signaling confidence.
Industry
- 🌱 Agrochemicals sector trading at industry P/E of 24.4, offering moderate valuations.
- 🌱 Sector supported by rising demand for crop protection and global food security initiatives.
Conclusion
📌 SUMICHEM is consolidating with mild bullish momentum, trading above key moving averages. Entry around ₹455–₹465 with exit near ₹495–₹510 offers a balanced risk-reward setup. While fundamentals show strong efficiency and low debt, high valuation multiples and weak recent profit growth are concerns. The stock remains attractive for medium-term investors if earnings stabilize.
You could also explore a peer comparison or a sector growth outlook to see how SUMICHEM stacks up against industry trends.