VBL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

📊 Chart & Trend Analysis:

VBL is trading at ₹470, almost aligned with its 50 DMA (₹469) and slightly below its 200 DMA (₹490), indicating neutral momentum with mild weakness. RSI at 52.3 suggests balanced momentum, neither overbought nor oversold. MACD at 3.11 shows a positive crossover, hinting at short-term bullish signals. Bollinger Bands place the price near the mid-band, reflecting consolidation. Current volume (28,99,229) is below the 1-week average (35,20,773), showing reduced participation and limited breakout strength.

🔎 Momentum Signals:

- Short-term momentum: Neutral-to-bullish.

- Support levels: ₹460 (near-term), ₹445 (DMA 200), ₹419 (major support).

- Resistance levels: ₹485, ₹500, and strong resistance at ₹520.

- Optimal entry zone: ₹460–470.

- Optimal exit zone: ₹495–515.

- Current phase: Consolidation with mild bullish bias.

Positive

• Strong ROCE (23.8%) and ROE (20.1%) indicate efficient capital utilization.
• Low debt-to-equity ratio (0.02) ensures financial stability.
• PEG ratio of 0.90 suggests valuation is supported by growth prospects.
• DII holding increased by 1.26%, showing strong domestic institutional support.

Limitation

• High P/E ratio (60.6) compared to industry average (47.4) indicates overvaluation.
• Quarterly PAT dropped from ₹1,160 Cr. to ₹577 Cr., showing earnings volatility.
• Stock trading below 200 DMA reflects medium-term weakness.
• Dividend yield of 0.21% is relatively low.

Company Negative News

• Quarterly profit decline raises concerns about earnings sustainability.
• Stock underperformed with a 52-week index of 20.7%, lagging broader market momentum.

Company Positive News

• EPS of ₹7.76 reflects consistent profitability despite quarterly fluctuations.
• FII holding increased slightly (+0.07%), showing marginal foreign investor confidence.
• DII support strengthened, balancing overall sentiment.

Industry

• Industry P/E at 47.4 is lower than VBL’s, suggesting peers trade at more attractive valuations.
• Sector outlook remains stable with strong demand drivers in beverages and FMCG.

Conclusion

⚡ VBL is consolidating with mild bullish signals supported by MACD and RSI. Entry near ₹460–470 offers favorable risk-reward, while exits around ₹495–515 are optimal. Strong fundamentals and institutional support balance out valuation concerns and earnings volatility. Short-term trend is sideways-to-up, with breakout potential if volume improves.