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SUNDRMFAST - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.4

Last Updated Time : 24 May 26, 10:34 pm

Technical Rating: 3.4

Stock Code SUNDRMFAST Market Cap 17,792 Cr. Current Price 848 ₹ High / Low 1,080 ₹
Stock P/E 31.4 Book Value 193 ₹ Dividend Yield 0.94 % ROCE 17.8 %
ROE 14.7 % Face Value 1.00 ₹ DMA 50 841 ₹ DMA 200 911 ₹
Chg in FII Hold 1.23 % Chg in DII Hold -1.44 % PAT Qtr 158 Cr. PAT Prev Qtr 130 Cr.
RSI 54.4 MACD 5.31 Volume 2,25,240 Avg Vol 1Wk 1,38,583
Low price 730 ₹ High price 1,080 ₹ PEG Ratio 4.55 Debt to equity 0.11
52w Index 33.7 % Qtr Profit Var 26.3 % EPS 27.6 ₹ Industry PE 27.0

📊 Chart Analysis: SUNDRMFAST is trading at ₹848, slightly above its 50 DMA (₹841) but below its 200 DMA (₹911), showing mixed signals. RSI at 54.4 indicates neutral momentum, while MACD at 5.31 is mildly positive, suggesting short-term bullish bias. Bollinger Bands show price near the mid-range, reflecting consolidation. Current volume (2.25L) is higher than the 1-week average (1.38L), indicating stronger participation.

📈 Momentum Signals: Short-term momentum is moderately bullish, supported by MACD and price holding above the 50 DMA. RSI suggests room for further upside before overbought conditions.

💹 Support & Resistance: Strong support lies near ₹841 (50 DMA) and ₹730 (recent low). Immediate resistance is at ₹911 (200 DMA) and major resistance at ₹1,080 (recent high). Optimal entry zone: ₹835–₹850. Exit zone: ₹900–₹920.

🔄 Trend Status: The stock is currently consolidating upward, with potential to trend higher if resistance at ₹911 is breached.


Positive

  • ✅ EPS of ₹27.6 supports valuation strength.
  • ✅ ROCE of 17.8% and ROE of 14.7% indicate efficient capital use.
  • ✅ Dividend yield of 0.94% provides steady returns.
  • ✅ PAT improved sequentially from ₹130 Cr. to ₹158 Cr. (+26.3%).
  • ✅ FII holdings increased by 1.23%, showing foreign investor confidence.

Limitation

  • ⚠️ Current price below 200 DMA, showing weak medium-term strength.
  • ⚠️ PEG ratio of 4.55 suggests expensive growth expectations.
  • ⚠️ DII holdings decreased by -1.44%, showing reduced domestic confidence.

Company Negative News

  • 📉 Stock trading at only 33.7% of its 52-week index, reflecting underperformance.
  • 📉 Valuation stretched compared to industry peers (P/E 31.4 vs industry 27.0).

Company Positive News

  • 📈 Strong quarterly profit growth of 26.3% highlights improving performance.
  • 📈 Low debt-to-equity ratio of 0.11 shows financial stability.

Industry

  • ⚙️ Auto components sector trading at industry P/E of 27.0, offering moderate valuations.
  • ⚙️ Sector supported by rising demand in automotive manufacturing and exports.

Conclusion

📌 SUNDRMFAST is consolidating upward, trading above the 50 DMA but below the 200 DMA. Entry around ₹835–₹850 with exit near ₹900–₹920 offers a cautious setup. Fundamentals show strong efficiency, low debt, and improving profits, but high PEG ratio and underperformance relative to the 52-week index are concerns. The stock may trend higher if resistance at ₹911 is breached.

For broader context, you could explore a auto component sector outlook or compare SUNDRMFAST with peers through a valuation comparison.

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