ULTRACEMCO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | ULTRACEMCO | Market Cap | 3,41,415 Cr. | Current Price | 11,586 ₹ | High / Low | 13,110 ₹ |
| Stock P/E | 45.6 | Book Value | 2,534 ₹ | Dividend Yield | 0.67 % | ROCE | 12.7 % |
| ROE | 10.4 % | Face Value | 10.0 ₹ | DMA 50 | 11,749 ₹ | DMA 200 | 11,882 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 0.97 % | PAT Qtr | 2,616 Cr. | PAT Prev Qtr | 1,570 Cr. |
| RSI | 47.4 | MACD | 102 | Volume | 7,79,076 | Avg Vol 1Wk | 5,73,529 |
| Low price | 10,325 ₹ | High price | 13,110 ₹ | PEG Ratio | 3.06 | Debt to equity | 0.27 |
| 52w Index | 45.3 % | Qtr Profit Var | -2.48 % | EPS | 251 ₹ | Industry PE | 30.8 |
📈 Chart & Trend: ULTRACEMCO is trading below both its 50 DMA (11,749 ₹) and 200 DMA (11,882 ₹), reflecting short-term weakness despite long-term strength. RSI at 47.4 indicates neutral momentum, while MACD at 102 shows mild bullish crossover. Bollinger Bands are moderately tight, suggesting consolidation with limited breakout potential.
🔑 Momentum Signals: Current price (11,586 ₹) is holding near support at 11,500–11,550 ₹. Resistance levels are seen at 11,750 ₹ and 12,000 ₹. Volume (7.79L) is above the 1-week average (5.73L), showing strong participation and confirming momentum.
🎯 Entry Zone: 11,500–11,550 ₹ near support.
💰 Exit Zone: 11,750 ₹ (partial profit) and 12,000 ₹ (full exit).
📊 Trend Status: Consolidating with mild bullish bias.
Positive
- Strong EPS at 251 ₹ supports valuation strength.
- Quarterly PAT improved (2,616 Cr. vs 1,570 Cr.).
- Price recovery from 52-week low (10,325 ₹) supports sentiment.
- DII holdings increased (+0.97%), showing domestic investor confidence.
- Debt-to-equity ratio at 0.27 indicates manageable leverage.
Limitation
- High P/E (45.6) vs industry PE (30.8) suggests premium valuation.
- PEG ratio at 3.06 indicates expensive growth valuation.
- Price below both 50 DMA and 200 DMA caps upside momentum.
- ROCE (12.7%) and ROE (10.4%) are modest compared to peers.
Company Negative News
- Sequential profit variation at -2.48% shows earnings pressure.
- FII holdings reduced (-0.83%), reflecting weaker foreign confidence.
Company Positive News
- Strong quarterly PAT growth compared to previous quarter.
- DII inflows (+0.97%) reflect institutional support.
- Stock trading near upper range of 52-week performance (45.3%).
Industry
- Industry PE at 30.8 suggests sector trading at moderate valuations compared to ULTRACEMCO’s premium.
- Cement sector benefiting from infrastructure and housing demand but facing margin pressures from input costs.
Conclusion
ULTRACEMCO is consolidating with mild bullish bias supported by MACD and strong volume. Entry near 11,500–11,550 ₹ is favorable with exits at 11,750–12,000 ₹. While fundamentals remain strong with EPS and institutional support, high valuation and modest efficiency metrics limit conviction. Best suited for swing trades with cautious monitoring of resistance levels.