TATACHEM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | TATACHEM | Market Cap | 19,072 Cr. | Current Price | 750 ₹ | High / Low | 1,027 ₹ |
| Stock P/E | 30.8 | Book Value | 758 ₹ | Dividend Yield | 1.47 % | ROCE | 4.18 % |
| ROE | 3.30 % | Face Value | 10.0 ₹ | DMA 50 | 730 ₹ | DMA 200 | 783 ₹ |
| Chg in FII Hold | -0.36 % | Chg in DII Hold | 0.43 % | PAT Qtr | 48.0 Cr. | PAT Prev Qtr | 85.3 Cr. |
| RSI | 52.1 | MACD | 8.46 | Volume | 4,07,820 | Avg Vol 1Wk | 7,15,322 |
| Low price | 580 ₹ | High price | 1,027 ₹ | PEG Ratio | -2.15 | Debt to equity | 0.18 |
| 52w Index | 37.9 % | Qtr Profit Var | -50.5 % | EPS | 23.8 ₹ | Industry PE | 19.7 |
📊 Chart Analysis: TATACHEM is trading at ₹750, slightly above the 50 DMA (₹730) but below the 200 DMA (₹783), showing mixed signals. RSI at 52.1 suggests neutral momentum. MACD at 8.46 is mildly positive, indicating short-term bullish bias. Bollinger Bands show price near the mid-range, reflecting consolidation. Current volume (4.07L) is below the 1-week average (7.15L), suggesting reduced participation.
📈 Momentum Signals: Short-term momentum is moderately bullish, supported by MACD and price above the 50 DMA. RSI indicates room for further upside before overbought conditions.
💹 Support & Resistance: Strong support lies near ₹730 (50 DMA) and ₹580 (recent low). Immediate resistance is at ₹783 (200 DMA) and major resistance at ₹1,027 (recent high). Optimal entry zone: ₹740–₹755. Exit zone: ₹780–₹800.
🔄 Trend Status: The stock is currently consolidating upward, with potential to trend higher if resistance at ₹783 is breached.
Positive
- ✅ EPS of ₹23.8 supports valuation strength.
- ✅ Dividend yield of 1.47% provides steady returns.
- ✅ Very low debt-to-equity ratio of 0.18 indicates financial stability.
- ✅ DII holdings increased by 0.43%, showing domestic investor confidence.
Limitation
- ⚠️ Current price below 200 DMA, showing weak medium-term strength.
- ⚠️ High P/E of 30.8 compared to industry P/E of 19.7, suggesting premium valuation.
- ⚠️ PEG ratio of -2.15 indicates poor growth expectations.
- ⚠️ ROCE at 4.18% and ROE at 3.30% are weak efficiency metrics.
Company Negative News
- 📉 PAT declined from ₹85.3 Cr. to ₹48.0 Cr., showing earnings pressure.
- 📉 Quarterly profit variation of -50.5% highlights weak performance.
- 📉 FII holdings decreased by -0.36%, showing reduced foreign investor confidence.
Company Positive News
- 📈 Domestic institutional investors increased holdings, signaling confidence.
- 📈 Strong book value of ₹758 provides balance sheet support.
Industry
- 🏭 Chemicals sector trading at industry P/E of 19.7, lower than TATACHEM’s P/E of 30.8, suggesting premium valuation.
- 🏭 Sector supported by demand in specialty chemicals and industrial applications.
Conclusion
📌 TATACHEM is consolidating upward, trading above the 50 DMA but below the 200 DMA. Entry around ₹740–₹755 with exit near ₹780–₹800 offers a cautious setup. Fundamentals show strong book value and low debt, but weak efficiency metrics, declining profits, and premium valuation are concerns. The stock may trend higher if resistance at ₹783 is breached.
For broader context, you could explore a chemicals sector outlook or compare TATACHEM with peers through a valuation comparison.