TATAELXSI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | TATAELXSI | Market Cap | 26,871 Cr. | Current Price | 4,309 ₹ | High / Low | 6,735 ₹ |
| Stock P/E | 38.6 | Book Value | 488 ₹ | Dividend Yield | 1.74 % | ROCE | 29.9 % |
| ROE | 23.6 % | Face Value | 10.0 ₹ | DMA 50 | 4,346 ₹ | DMA 200 | 5,006 ₹ |
| Chg in FII Hold | 2.52 % | Chg in DII Hold | -0.89 % | PAT Qtr | 220 Cr. | PAT Prev Qtr | 159 Cr. |
| RSI | 54.7 | MACD | -35.2 | Volume | 2,82,623 | Avg Vol 1Wk | 2,37,837 |
| Low price | 3,945 ₹ | High price | 6,735 ₹ | PEG Ratio | -14.0 | Debt to equity | 0.05 |
| 52w Index | 13.1 % | Qtr Profit Var | 27.8 % | EPS | 101 ₹ | Industry PE | 20.7 |
📊 Chart Analysis: TATAELXSI is trading at ₹4,309, slightly below the 50 DMA (₹4,346) and well below the 200 DMA (₹5,006), indicating medium-term weakness despite short-term resilience. RSI at 54.7 suggests neutral-to-positive momentum. MACD at -35.2 is negative, showing lingering bearish pressure. Bollinger Bands place the price near the mid-range, reflecting consolidation. Current volume (2.82L) is above the 1-week average (2.37L), showing healthy participation.
📈 Momentum Signals: Short-term momentum is mixed — RSI indicates stability, but MACD remains negative. Price hovering near the 50 DMA suggests indecision between bulls and bears.
💹 Support & Resistance: Strong support lies near ₹3,945 (recent low). Immediate resistance is at ₹4,346 (50 DMA) and major resistance at ₹5,006 (200 DMA). Optimal entry zone: ₹4,250–₹4,300. Exit zone: ₹4,450–₹4,550.
🔄 Trend Status: The stock is currently consolidating, with potential to reverse upward if it sustains above the 50 DMA.
Positive
- ✅ ROCE of 29.9% and ROE of 23.6% highlight strong efficiency.
- ✅ EPS of ₹101 supports valuation strength.
- ✅ Dividend yield of 1.74% provides steady returns.
- ✅ PAT improved sequentially from ₹159 Cr. to ₹220 Cr. (+27.8%).
- ✅ FII holdings increased by 2.52%, showing strong foreign investor confidence.
- ✅ Very low debt-to-equity ratio of 0.05 indicates financial stability.
Limitation
- ⚠️ Current price below 200 DMA, showing weak medium-term strength.
- ⚠️ High P/E of 38.6 compared to industry P/E of 20.7, suggesting premium valuation.
- ⚠️ PEG ratio of -14.0 indicates poor growth expectations.
- ⚠️ DII holdings decreased by -0.89%, showing reduced domestic confidence.
Company Negative News
- 📉 Stock trading at only 13.1% of its 52-week index, reflecting severe underperformance relative to highs.
- 📉 MACD remains negative, signaling lingering bearish sentiment despite profit growth.
Company Positive News
- 📈 Quarterly profit growth of 27.8% highlights strong operational performance.
- 📈 FII inflows show renewed foreign investor confidence.
Industry
- 💻 IT & design services sector trading at industry P/E of 20.7, lower than TATAELXSI’s P/E of 38.6, highlighting valuation concerns.
- 💻 Sector supported by demand for product engineering, design innovation, and digital transformation services.
Conclusion
📌 TATAELXSI is consolidating, trading near the 50 DMA but below the 200 DMA. Entry around ₹4,250–₹4,300 with exit near ₹4,450–₹4,550 offers a cautious setup. Fundamentals show strong efficiency, profit growth, and low debt, but high valuation multiples, weak medium-term trend, and domestic investor outflows are concerns. The stock may trend higher if resistance at ₹4,346 is breached and sustained.
For broader context, you could explore a IT design services outlook or compare TATAELXSI with peers through a valuation comparison.