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VGUARD - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.9

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

Technical Rating: 3.9

Stock Code VGUARD Market Cap 14,544 Cr. Current Price 333 ₹ High / Low 413 ₹
Stock P/E 56.9 Book Value 47.5 ₹ Dividend Yield 0.45 % ROCE 17.2 %
ROE 13.6 % Face Value 1.00 ₹ DMA 50 324 ₹ DMA 200 347 ₹
Chg in FII Hold -0.33 % Chg in DII Hold 0.46 % PAT Qtr 55.7 Cr. PAT Prev Qtr 66.0 Cr.
RSI 59.4 MACD -0.62 Volume 1,84,421 Avg Vol 1Wk 1,94,302
Low price 290 ₹ High price 413 ₹ PEG Ratio 14.2 Debt to equity 0.03
52w Index 34.8 % Qtr Profit Var 15.9 % EPS 5.55 ₹ Industry PE 43.3

📊 Technical Analysis

  • Chart Patterns: Price is above 50 DMA (₹324) but below 200 DMA (₹347), showing mixed signals.
  • RSI: At 59.4, leaning towards overbought zone, suggesting caution.
  • MACD: Slightly negative (-0.62), indicating mild bearish divergence.
  • Bollinger Bands: Price near upper band, suggesting limited upside in short term.
  • Volume Trends: Current volume (1.84L) slightly below 1-week average (1.94L), showing reduced participation.

📈 Momentum & Signals

  • Short-term Momentum: Neutral to mildly bullish.
  • Support Zone: ₹324 – ₹330 (near 50 DMA).
  • Resistance Zone: ₹347 – ₹355 (near 200 DMA).
  • Optimal Entry: Around ₹324–₹330 if support holds.
  • Optimal Exit: Near ₹347–₹355 unless breakout occurs.
  • Trend Status: Consolidating with slight bullish bias.

✅ Positive

  • Strong ROCE (17.2%) and ROE (13.6%).
  • Low debt-to-equity (0.03), financially stable.
  • 52-week index gain of 34.8%, showing sector strength.

⚠️ Limitation

  • High P/E (56.9) compared to industry average (43.3).
  • PEG ratio of 14.2 indicates overvaluation.
  • Quarterly PAT declined from ₹66 Cr. to ₹55.7 Cr.

📉 Company Negative News

  • FII holding decreased (-0.33%), showing reduced foreign investor confidence.
  • Quarterly profit decline indicates margin pressure.

📈 Company Positive News

  • DII holding increased (+0.46%), showing domestic institutional support.
  • Quarterly profit variation shows resilience despite decline (15.9% variation).

🏭 Industry

  • Industry P/E at 43.3, lower than company’s 56.9, suggesting sector is relatively cheaper.
  • Sector growth strong with 34.8% index gain in 52 weeks.

🔎 Conclusion

VGUARD is consolidating with a slight bullish bias, trading between its 50 DMA and 200 DMA. While fundamentals are stable with low debt and decent returns, valuation remains stretched compared to industry peers. Short-term traders should watch ₹324–₹330 as support and ₹347–₹355 as resistance. A breakout above ₹355 could signal a stronger uptrend, while failure to hold ₹324 may lead to weakness.

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