⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
WELCORP - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | WELCORP | Market Cap | 21,703 Cr. | Current Price | 823 ₹ | High / Low | 995 ₹ |
| Stock P/E | 28.7 | Book Value | 180 ₹ | Dividend Yield | 0.61 % | ROCE | 18.2 % |
| ROE | 13.5 % | Face Value | 5.00 ₹ | DMA 50 | 805 ₹ | DMA 200 | 819 ₹ |
| Chg in FII Hold | -0.34 % | Chg in DII Hold | -0.34 % | PAT Qtr | 161 Cr. | PAT Prev Qtr | 231 Cr. |
| RSI | 53.6 | MACD | 5.23 | Volume | 3,71,059 | Avg Vol 1Wk | 4,91,310 |
| Low price | 664 ₹ | High price | 995 ₹ | PEG Ratio | 11.4 | Debt to equity | 0.21 |
| 52w Index | 48.0 % | Qtr Profit Var | 3.28 % | EPS | 47.4 ₹ | Industry PE | 18.1 |
📊 Technical Analysis
- Chart Patterns: Price is slightly above both 50 DMA (₹805) and 200 DMA (₹819), showing mild bullish alignment.
- RSI: At 53.6, neutral zone, suggesting balanced momentum.
- MACD: Positive (5.23), confirming bullish bias.
- Bollinger Bands: Price near mid-band, indicating consolidation with upward potential.
- Volume Trends: Current volume (3.71L) below 1-week average (4.91L), showing reduced participation.
📈 Momentum & Signals
- Short-term Momentum: Neutral to mildly bullish.
- Support Zone: ₹805 – ₹819 (DMA levels).
- Resistance Zone: ₹880 – ₹995 (recent highs).
- Optimal Entry: Around ₹805–₹819 if support holds.
- Optimal Exit: Near ₹880–₹995 unless breakout occurs.
- Trend Status: Consolidating with slight bullish bias.
✅ Positive
- Strong ROCE (18.2%) and ROE (13.5%).
- EPS at ₹47.4, solid earnings base.
- Dividend yield of 0.61%, providing shareholder value.
⚠️ Limitation
- High P/E (28.7) compared to industry average (18.1).
- PEG ratio of 11.4 indicates overvaluation.
- Quarterly PAT declined from ₹231 Cr. to ₹161 Cr.
📉 Company Negative News
- FII holding decreased (-0.34%), showing reduced foreign investor confidence.
- DII holding also decreased (-0.34%), weak domestic support.
📈 Company Positive News
- Quarterly profit variation (+3.28%) shows resilience despite decline.
- Strong fundamentals with consistent ROCE and ROE.
🏭 Industry
- Industry P/E at 18.1, much lower than company’s 28.7, suggesting sector is cheaper.
- Sector growth strong with 48% index gain in 52 weeks.
🔎 Conclusion
WELCORP is consolidating with mild bullish signals, supported by positive MACD and neutral RSI. While fundamentals remain strong, valuations are stretched compared to industry peers, and profit has declined. Short-term traders should watch ₹805–₹819 as support and ₹880–₹995 as resistance. The stock is currently consolidating, and a breakout above ₹995 would be needed to confirm a stronger uptrend.