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UBL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.6

Last Updated Time : 03 May 26, 11:25 am

Technical Rating: 3.6

Stock Code UBL Market Cap 38,566 Cr. Current Price 1,459 ₹ High / Low 2,245 ₹
Stock P/E 91.8 Book Value 164 ₹ Dividend Yield 0.69 % ROCE 13.9 %
ROE 10.8 % Face Value 1.00 ₹ DMA 50 1,535 ₹ DMA 200 1,678 ₹
Chg in FII Hold -0.56 % Chg in DII Hold 0.63 % PAT Qtr 92.0 Cr. PAT Prev Qtr 47.0 Cr.
RSI 38.8 MACD -24.4 Volume 2,14,677 Avg Vol 1Wk 1,98,342
Low price 1,401 ₹ High price 2,245 ₹ PEG Ratio 11.5 Debt to equity 0.18
52w Index 6.81 % Qtr Profit Var 76.8 % EPS 15.5 ₹ Industry PE 40.4

📈 Chart & Trend: UBL is trading below both its 50 DMA (1,535 ₹) and 200 DMA (1,678 ₹), reflecting weak momentum and bearish structure. RSI at 38.8 indicates oversold territory, while MACD at -24.4 confirms bearish crossover. Bollinger Bands are moderately tight, suggesting consolidation with downside risk.

🔑 Momentum Signals: Current price (1,459 ₹) is holding near support at 1,440–1,450 ₹. Resistance levels are seen at 1,500 ₹ and 1,560 ₹. Volume (2.14L) is slightly above the 1-week average (1.98L), showing steady participation but not strong conviction.

🎯 Entry Zone: 1,440–1,450 ₹ near support.

💰 Exit Zone: 1,500 ₹ (partial profit) and 1,560 ₹ (full exit).

📊 Trend Status: Consolidating with bearish bias.

Positive

  • Quarterly PAT improved (92 Cr. vs 47 Cr.), +76.8% variation.
  • EPS at 15.5 ₹ supports valuation strength.
  • Debt-to-equity ratio at 0.18 indicates low leverage risk.
  • DII holdings increased (+0.63%), showing domestic investor confidence.
  • Volume slightly above average supports short-term stability.

Limitation

  • High P/E (91.8) vs industry PE (40.4) suggests severe overvaluation.
  • PEG ratio at 11.5 reflects expensive growth valuation.
  • Price below both 50 DMA and 200 DMA confirms weak trend.
  • RSI near oversold levels indicates weak momentum.

Company Negative News

  • FII holdings reduced (-0.56%), showing weaker foreign confidence.
  • Stock trading far below 52-week high (2,245 ₹).
  • Weak 52-week performance (6.81% index level).

Company Positive News

  • Strong quarterly profit growth (+76.8%).
  • DII inflows (+0.63%) reflect domestic institutional support.
  • EPS and low debt provide fundamental stability.

Industry

  • Industry PE at 40.4 suggests sector trading at moderate valuations compared to UBL’s premium.
  • Beverages and FMCG sector benefiting from consumption demand but facing margin pressures.

Conclusion

UBL is consolidating with bearish bias, trading below key moving averages despite improved quarterly profits. Entry near 1,440–1,450 ₹ is favorable for cautious trades with exits at 1,500–1,560 ₹. While fundamentals show profit recovery and low debt, high valuation and weak technicals limit conviction. Best suited for short-term swing trades with strict stop-loss discipline.

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