WESTLIFE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | WESTLIFE | Market Cap | 7,521 Cr. | Current Price | 483 ₹ | High / Low | 893 ₹ |
| Stock P/E | 483 | Book Value | 32.7 ₹ | Dividend Yield | 0.15 % | ROCE | -0.08 % |
| ROE | 0.18 % | Face Value | 2.00 ₹ | DMA 50 | 552 ₹ | DMA 200 | 646 ₹ |
| Chg in FII Hold | -1.14 % | Chg in DII Hold | 0.71 % | PAT Qtr | -0.13 Cr. | PAT Prev Qtr | 14.5 Cr. |
| RSI | 31.7 | MACD | -14.6 | Volume | 1,57,136 | Avg Vol 1Wk | 1,55,152 |
| Low price | 482 ₹ | High price | 893 ₹ | PEG Ratio | 8.02 | Debt to equity | 0.00 |
| 52w Index | 0.22 % | Qtr Profit Var | 38.1 % | EPS | 1.00 ₹ | Industry PE | 116 |
📊 Chart Patterns: WESTLIFE is trading well below its 50 DMA (552 ₹) and 200 DMA (646 ₹), indicating a strong bearish trend. Support is visible near 480–490 ₹, while resistance lies around 550–560 ₹.
📈 Moving Averages: Current price (483 ₹) is significantly below both moving averages, confirming sustained weakness.
📉 RSI: At 31.7, RSI is close to oversold territory, suggesting potential for a technical rebound.
📉 MACD: Negative (-14.6) with bearish crossover, reinforcing weak momentum.
📊 Bollinger Bands: Price is near the lower band, signaling oversold conditions and possible bounce if buying emerges.
📊 Volume Trends: Current volume (1,57,136) is slightly above the 1-week average (1,55,152), showing stable participation but no strong momentum shift.
🎯 Momentum Signals: Short-term bearish momentum dominates, but oversold RSI and Bollinger Band positioning hint at a possible rebound from support.
💡 Entry Zone: 480–490 ₹ (near strong support and oversold RSI).
💡 Exit Zone: 550–560 ₹ (near resistance and 50 DMA).
📌 Trend Status: The stock is currently reversing from a steep downtrend, with oversold signals suggesting potential short-term recovery if support holds.
Positive
- ✅ Debt-free structure (Debt-to-equity ratio 0.00) ensures financial stability.
- ✅ Dividend yield of 0.15% provides shareholder returns, albeit modest.
- ✅ EPS of 1.00 ₹ reflects positive per-share profitability despite recent weakness.
Limitation
- ⚠️ Extremely high P/E (483) compared to industry average (116), suggesting severe overvaluation.
- ⚠️ Weak ROCE (-0.08%) and ROE (0.18%) reflect poor capital efficiency.
- ⚠️ PEG ratio (8.02) indicates expensive valuation relative to growth.
Company Negative News
- 📉 Decline in FII holdings (-1.14%) shows reduced foreign investor confidence.
- 📉 Quarterly PAT turned negative (-0.13 Cr. vs 14.5 Cr.), highlighting earnings volatility.
Company Positive News
- 📈 Increase in DII holdings (+0.71%) reflects domestic institutional support.
- 📈 EPS remains positive despite weak profitability metrics.
Industry
- 🏭 Industry P/E at 116 suggests sector is richly valued, though WESTLIFE trades at an even higher premium.
- 🏭 Quick-service restaurant sector outlook remains resilient with long-term demand drivers.
Conclusion
🔎 WESTLIFE is reversing from a steep downtrend, trading well below key moving averages. Entry near 480–490 ₹ offers tactical opportunity, while exit near 550–560 ₹ is optimal. Oversold RSI and Bollinger Band positioning suggest potential rebound, but extreme valuation and weak profitability metrics warrant cautious positioning.