TATACONSUM - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | TATACONSUM | Market Cap | 1,18,060 Cr. | Current Price | 1,193 ₹ | High / Low | 1,283 ₹ |
| Stock P/E | 72.4 | Book Value | 180 ₹ | Dividend Yield | 0.84 % | ROCE | 11.9 % |
| ROE | 9.37 % | Face Value | 1.00 ₹ | DMA 50 | 1,157 ₹ | DMA 200 | 1,132 ₹ |
| Chg in FII Hold | -0.39 % | Chg in DII Hold | 0.72 % | PAT Qtr | 341 Cr. | PAT Prev Qtr | 307 Cr. |
| RSI | 53.5 | MACD | 23.4 | Volume | 19,34,209 | Avg Vol 1Wk | 18,39,362 |
| Low price | 1,007 ₹ | High price | 1,283 ₹ | PEG Ratio | 4.29 | Debt to equity | 0.04 |
| 52w Index | 67.4 % | Qtr Profit Var | 58.6 % | EPS | 16.5 ₹ | Industry PE | 20.8 |
📊 Chart Analysis: TATACONSUM is trading at ₹1,193, above both the 50 DMA (₹1,157) and 200 DMA (₹1,132), indicating short-term bullish bias. RSI at 53.5 suggests neutral-to-positive momentum. MACD at 23.4 is positive, confirming upward momentum. Bollinger Bands show price near the mid-range, reflecting consolidation with upward bias. Current volume (19.3L) is slightly above the 1-week average (18.3L), showing healthy participation.
📈 Momentum Signals: Short-term momentum is moderately bullish, supported by MACD and price above moving averages. RSI indicates room for further upside before overbought conditions.
💹 Support & Resistance: Strong support lies near ₹1,157 (50 DMA) and ₹1,132 (200 DMA). Immediate resistance is at ₹1,250, with major resistance at ₹1,283 (recent high). Optimal entry zone: ₹1,170–₹1,190. Exit zone: ₹1,250–₹1,270.
🔄 Trend Status: The stock is currently trending upward with steady momentum, though resistance near ₹1,283 may trigger consolidation.
Positive
- ✅ EPS of ₹16.5 supports valuation strength.
- ✅ Dividend yield of 0.84% provides steady returns.
- ✅ Very low debt-to-equity ratio of 0.04 indicates financial stability.
- ✅ PAT improved sequentially from ₹307 Cr. to ₹341 Cr.
- ✅ DII holdings increased by 0.72%, showing domestic investor confidence.
Limitation
- ⚠️ High P/E of 72.4 compared to industry P/E of 20.8, suggesting premium valuation.
- ⚠️ PEG ratio of 4.29 indicates expensive growth expectations.
- ⚠️ ROCE at 11.9% and ROE at 9.37% are modest efficiency metrics.
Company Negative News
- 📉 FII holdings decreased by -0.39%, showing reduced foreign investor confidence.
- 📉 Stock trading at only 67.4% of its 52-week index, reflecting underperformance relative to highs.
Company Positive News
- 📈 Quarterly profit growth of 58.6% highlights strong operational performance.
- 📈 Domestic institutional investors increased holdings, signaling confidence.
Industry
- 🍵 FMCG & beverages sector trading at industry P/E of 20.8, far lower than TATACONSUM’s P/E of 72.4, highlighting valuation concerns.
- 🍵 Sector supported by rising demand for branded packaged foods and beverages.
Conclusion
📌 TATACONSUM is trending upward, trading above key moving averages with supportive MACD and RSI. Entry around ₹1,170–₹1,190 with exit near ₹1,250–₹1,270 offers a favorable short-term setup. Fundamentals show profit growth, low debt, and dividend yield, but high valuation multiples, modest efficiency, and foreign investor outflows are concerns. The stock may consolidate near resistance at ₹1,283 before resuming its trend.
For broader context, you could explore a FMCG sector outlook or compare TATACONSUM with peers through a valuation comparison.