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USHAMART - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 19 Mar 26, 09:02 pm

Technical Rating: 4.0

Stock Code USHAMART Market Cap 12,519 Cr. Current Price 411 ₹ High / Low 498 ₹
Stock P/E 37.9 Book Value 52.2 ₹ Dividend Yield 0.73 % ROCE 26.6 %
ROE 21.1 % Face Value 1.00 ₹ DMA 50 420 ₹ DMA 200 409 ₹
Chg in FII Hold 0.48 % Chg in DII Hold 1.82 % PAT Qtr 84.0 Cr. PAT Prev Qtr 97.3 Cr.
RSI 48.6 MACD -3.18 Volume 2,84,379 Avg Vol 1Wk 3,01,599
Low price 281 ₹ High price 498 ₹ PEG Ratio 2.16 Debt to equity 0.03
52w Index 59.9 % Qtr Profit Var 8.99 % EPS 9.94 ₹ Industry PE 18.1

📊 Technical Analysis

  • Chart Patterns: Price is hovering near 200 DMA (₹409) and slightly below 50 DMA (₹420), showing indecision.
  • RSI: At 48.6, neutral zone, neither overbought nor oversold.
  • MACD: Negative (-3.18), mild bearish signal.
  • Bollinger Bands: Price near mid-band, suggesting consolidation.
  • Volume Trends: Current volume (2.84L) slightly below 1-week average (3.01L), showing reduced participation.

📈 Momentum & Signals

  • Short-term Momentum: Neutral to mildly bearish.
  • Support Zone: ₹400 – ₹409 (near 200 DMA).
  • Resistance Zone: ₹420 – ₹430 (near 50 DMA).
  • Optimal Entry: Around ₹400–₹409 if support holds.
  • Optimal Exit: Near ₹420–₹430 unless breakout occurs.
  • Trend Status: Consolidating with sideways bias.

✅ Positive

  • Strong ROCE (26.6%) and ROE (21.1%).
  • Low debt-to-equity (0.03), financially sound.
  • 52-week index gain of 59.9%, showing strong sector momentum.

⚠️ Limitation

  • High P/E (37.9) compared to industry average (18.1).
  • Quarterly PAT declined from ₹97.3 Cr. to ₹84 Cr.
  • Trading below 50 DMA, showing short-term weakness.

📉 Company Negative News

  • Quarterly profit decline indicates margin pressure.

📈 Company Positive News

  • FII holding increased (+0.48%), showing foreign investor confidence.
  • DII holding increased significantly (+1.82%), strong domestic support.

🏭 Industry

  • Industry P/E at 18.1, much lower than company’s 37.9, suggesting sector is cheaper.
  • Sector growth robust with strong 52-week performance.

🔎 Conclusion

USHAMART is consolidating near its long-term averages with neutral momentum. While fundamentals are strong (high ROCE, ROE, low debt), valuation remains stretched compared to industry peers. Short-term traders should watch ₹400–₹409 as support and ₹420–₹430 as resistance. A breakout above ₹430 could signal trend reversal towards bullish momentum.

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