ULTRACEMCO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | ULTRACEMCO | Market Cap | 3,40,874 Cr. | Current Price | 11,575 ₹ | 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 | 11,710 ₹ | DMA 200 | 11,854 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 0.97 % | PAT Qtr | 2,616 Cr. | PAT Prev Qtr | 1,570 Cr. |
| RSI | 47.6 | MACD | -59.3 | Volume | 3,57,624 | Avg Vol 1Wk | 2,85,200 |
| Low price | 10,325 ₹ | High price | 13,110 ₹ | PEG Ratio | 3.05 | Debt to equity | 0.27 |
| 52w Index | 44.9 % | Qtr Profit Var | -2.48 % | EPS | 251 ₹ | Industry PE | 29.0 |
📊 Chart Analysis: ULTRACEMCO trades at ₹11,575, below both its 50 DMA (₹11,710) and 200 DMA (₹11,854), signaling short-term and medium-term weakness. RSI at 47.6 indicates neutral-to-slightly bearish momentum. MACD at -59.3 is negative, confirming downward pressure. Bollinger Bands place the price near the midline, suggesting consolidation. Current volume (3.57L) is slightly above the 1-week average (2.85L), reflecting increased participation during declines.
📈 Momentum Signals: Short-term momentum is bearish with neutral bias. A move above ₹11,700 could trigger recovery, while a drop below ₹11,500 risks further downside.
💡 Entry Zone: ₹11,450–₹11,550 (support near recent lows).
🚪 Exit Zone: ₹11,750–₹12,000 (resistance near 200 DMA and trendline).
🔎 Trend Status: The stock is consolidating after falling from its 52-week high of ₹13,110, with weak technicals but volume activity suggesting potential for short-term swings.
Positive
- 📌 EPS of ₹251 with strong profitability.
- 📌 ROCE of 12.7% and ROE of 10.4% show decent efficiency.
- 📌 Dividend yield of 0.67% provides shareholder returns.
- 📌 DII holding increased (+0.97%), showing domestic institutional support.
Limitation
- ⚠️ Price below both 50 DMA and 200 DMA indicates weakness.
- ⚠️ High P/E of 45.6 compared to industry PE (29.0), suggesting overvaluation.
- ⚠️ PEG ratio of 3.05 highlights expensive growth outlook.
Company Negative News
- ❌ FII holding decreased (-0.83%), reflecting reduced foreign investor confidence.
- ❌ Quarterly profit variation at -2.48% shows margin pressure.
Company Positive News
- ✅ PAT improved from ₹1,570 Cr. to ₹2,616 Cr., showing operational strength.
- ✅ Strong trading volumes indicate investor interest despite weakness.
Industry
- 🌐 Cement and construction sector remains resilient with infrastructure demand.
- 🌐 Industry PE at 29.0 is lower than ULTRACEMCO’s PE, suggesting premium valuation.
Conclusion
📌 ULTRACEMCO is consolidating with neutral-to-bearish signals supported by RSI and MACD. Traders may consider entries near ₹11,450–₹11,550 and exits around ₹11,750–₹12,000. While fundamentals show profitability and institutional support, high valuation, weak efficiency, and declining foreign confidence warrant cautious optimism for medium-term investors.
For deeper clarity, we could refine support and resistance mapping, expand on volume analysis to confirm momentum, or dive into RSI and MACD signals for short-term trading cues.