ZENTEC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.3

📊 Chart & Trend Analysis:

ZENTEC is trading at ₹1,368, slightly below its 50 DMA (₹1,404) and 200 DMA (₹1,526), indicating short-term weakness. RSI at 40.7 suggests the stock is in a mildly oversold zone. MACD at -11.4 shows bearish crossover, signaling downward momentum. Bollinger Bands place the price near the lower band, reflecting consolidation with downside bias. Current volume (2,09,676) is slightly above the 1-week average (1,96,246), showing moderate participation but no strong breakout signals.

🔎 Momentum Signals:

- Short-term momentum: Bearish-to-neutral.

- Support levels: ₹1,350, ₹1,300, ₹945 (major support).

- Resistance levels: ₹1,400, ₹1,450, ₹1,526 (DMA 200).

- Optimal entry zone: ₹1,340–1,370.

- Optimal exit zone: ₹1,420–1,500.

- Current phase: Consolidation with bearish undertone.

Positive

• Strong ROCE (32.9%) and ROE (24.6%) highlight excellent capital efficiency.
• EPS of ₹22.9 reflects consistent profitability.
• PEG ratio of 0.15 suggests attractive valuation relative to growth.
• Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet.
• Volume slightly above average shows investor interest despite weakness.

Limitation

• Stock trading below both 50 DMA and 200 DMA confirms bearish bias.
• High P/E ratio (59.8) compared to industry average (57.9) suggests premium valuation.
• Dividend yield of 0.15% is negligible.
• Quarterly profit variation (-29.2%) shows earnings volatility.

Company Negative News

• FII holding decreased by -0.10%, reflecting reduced foreign investor confidence.
• DII holding decreased by -0.82%, showing weak domestic institutional sentiment.

Company Positive News

• PAT improved sequentially from ₹37.1 Cr. to ₹46.2 Cr., showing earnings recovery.
• Strong fundamentals with high ROCE and ROE support long-term value.

Industry

• Industry P/E at 57.9 is slightly lower than ZENTEC’s, suggesting peers trade at fairer valuations.
• Sector outlook remains strong with demand growth in technology and engineering solutions.

Conclusion

⚠️ ZENTEC is consolidating with bearish undertone, trading below key moving averages and showing weak momentum. Entry near ₹1,340–1,370 offers limited risk-reward, while exits around ₹1,420–1,500 are optimal. Strong fundamentals, debt-free balance sheet, and attractive PEG ratio balance out valuation concerns and weak institutional sentiment. Short-term trend remains sideways-to-down, with rebound potential if buying interest improves.