USHAMART - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 4.3

📊 Chart & Trend Analysis:

USHAMART is trading at ₹446, slightly above its 50 DMA (₹439) and comfortably above its 200 DMA (₹396), indicating medium-term bullish strength. RSI at 53 reflects neutral momentum, while MACD at 1.41 is positive, suggesting mild bullish crossover. Bollinger Bands show price near the mid-range, pointing to consolidation. Current volume (3,19,072) is below the 1-week average (6,97,814), signaling reduced participation and sideways bias.

🔎 Momentum Signals:

- Short-term momentum: Mildly bullish.

- Support levels: ₹439 (DMA 50), ₹420 (trendline), ₹396 (DMA 200).

- Resistance levels: ₹460, ₹475, and strong resistance at ₹498.

- Optimal entry zone: ₹435–445.

- Optimal exit zone: ₹470–490.

- Current phase: Consolidation with bullish undertone.

Positive

• High ROCE (26.6%) and ROE (21.1%) show strong capital efficiency.
• Debt-to-equity ratio of 0.03 indicates minimal leverage risk.
• Quarterly PAT growth of 24.7% highlights earnings momentum.
• Stock trading above both 50 DMA and 200 DMA confirms medium-term strength.

Limitation

• Elevated P/E ratio (42.0) compared to industry average (20.6) suggests overvaluation.
• Volume trends show declining participation, limiting breakout potential.
• PEG ratio of 2.40 indicates growth may not fully justify valuation.

Company Negative News

• FII holding decreased by -0.15%, reflecting reduced foreign investor confidence.

Company Positive News

• DII holding increased by 1.23%, showing strong domestic institutional support.
• PAT rose from ₹70.9 Cr. to ₹97.3 Cr., signaling robust earnings growth.

Industry

• Industry P/E at 20.6 is significantly lower than USHAMART’s, highlighting sector undervaluation relative to the stock.
• Sector outlook remains stable with demand-driven expansion.

Conclusion

🚀 USHAMART is consolidating with a bullish bias. Entry near ₹440 offers favorable risk-reward, while exits around ₹475–490 are optimal. Strong fundamentals and institutional support balance out valuation concerns. Short-term trend is sideways-to-up, with breakout potential if volume improves.