SUMICHEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | SUMICHEM | Market Cap | 20,922 Cr. | Current Price | 419 ₹ | High / Low | 665 ₹ |
| Stock P/E | 38.6 | Book Value | 64.0 ₹ | Dividend Yield | 0.29 % | ROCE | 25.1 % |
| ROE | 18.8 % | Face Value | 10.0 ₹ | DMA 50 | 417 ₹ | DMA 200 | 458 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.33 % | PAT Qtr | 86.2 Cr. | PAT Prev Qtr | 178 Cr. |
| RSI | 49.5 | MACD | 9.84 | Volume | 2,35,425 | Avg Vol 1Wk | 1,59,452 |
| Low price | 363 ₹ | High price | 665 ₹ | PEG Ratio | 7.70 | Debt to equity | 0.02 |
| 52w Index | 18.7 % | Qtr Profit Var | 2.27 % | EPS | 10.6 ₹ | Industry PE | 25.0 |
📈 Chart Patterns & Trend: SUMICHEM is consolidating near its 50 DMA (₹417) with current price at ₹419. The 200 DMA (₹458) acts as a higher resistance zone. Trend bias is neutral with mild bullish undertone, but momentum is weak due to recent profit decline.
📊 Indicators: RSI at 49.5 suggests neutral momentum. MACD positive at 9.84 indicates short-term bullish crossover. Bollinger Bands show price near mid-band, reflecting sideways consolidation.
🔎 Volume: Current volume (2.35 Lakh) is above average weekly volume (1.59 Lakh), showing active participation and accumulation interest.
🎯 Entry Zone: ₹400–₹415 (near 50 DMA support)
🚪 Exit Zone: ₹455–₹470 (resistance near 200 DMA)
Positive
- Strong ROCE (25.1%) and ROE (18.8%) indicate operational efficiency.
- Low debt-to-equity ratio (0.02) ensures financial stability.
- FII and DII holdings increased slightly, showing institutional support.
- Stock trading above 50 DMA, signaling near-term strength.
Limitation
- High P/E of 38.6 compared to industry average (25.0).
- PEG ratio of 7.70 suggests overvaluation relative to growth.
- Dividend yield is minimal at 0.29%.
- Sequential PAT decline (₹178 Cr. → ₹86.2 Cr.) raises concerns.
Company Negative News
- Sharp decline in quarterly profits limits near-term upside.
- High valuation multiples may restrict growth if earnings do not accelerate.
Company Positive News
- Strong efficiency metrics (ROCE, ROE) and low debt profile.
- Institutional investors marginally increased holdings.
Industry
- Industry PE at 25.0 is lower than SUMICHEM’s 38.6, highlighting premium valuation.
- Sector outlook stable with demand recovery in specialty chemicals.
Conclusion
SUMICHEM is consolidating near support with mild bullish signals from MACD and volume. Entry near ₹400–₹415 offers favorable risk-reward, with exit around ₹455–₹470. Long-term fundamentals are strong, but high valuations and profit decline require cautious positioning.
Would you like me to also prepare a short-term intraday trading setup for SUMICHEM, with tighter entry/exit levels and momentum triggers, alongside this swing/investment view?