ZENTEC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | ZENTEC | Market Cap | 12,070 Cr. | Current Price | 1,336 ₹ | High / Low | 2,268 ₹ |
| Stock P/E | 55.9 | Book Value | 195 ₹ | Dividend Yield | 0.15 % | ROCE | 32.9 % |
| ROE | 24.6 % | Face Value | 1.00 ₹ | DMA 50 | 1,355 ₹ | DMA 200 | 1,478 ₹ |
| Chg in FII Hold | -0.40 % | Chg in DII Hold | -0.07 % | PAT Qtr | 47.8 Cr. | PAT Prev Qtr | 46.2 Cr. |
| RSI | 49.9 | MACD | 0.00 | Volume | 16,28,967 | Avg Vol 1Wk | 7,33,204 |
| Low price | 945 ₹ | High price | 2,268 ₹ | PEG Ratio | 0.14 | Debt to equity | 0.00 |
| 52w Index | 29.6 % | Qtr Profit Var | 23.8 % | EPS | 23.9 ₹ | Industry PE | 56.2 |
📊 Chart Patterns & Trend: ZENTEC is trading slightly below its 50 DMA (1,355 ₹) and 200 DMA (1,478 ₹), indicating mild weakness but overall stability. Price action suggests consolidation between 1,320–1,380 ₹, with strong support at 1,300–1,320 ₹ and resistance near 1,380–1,420 ₹. Trendlines show sideways movement with potential for reversal if momentum strengthens.
📈 Moving Averages: Current price (1,336 ₹) is marginally below both 50 DMA and 200 DMA, signaling indecision. A sustained move above 1,380–1,420 ₹ would confirm bullish reversal.
📉 RSI: At 49.9, RSI is neutral, suggesting balanced momentum with scope for either direction.
📈 MACD: Flat at 0.00, indicating lack of clear momentum but potential for breakout if volume improves.
📊 Bollinger Bands: Price is near the mid-band, signaling consolidation with limited volatility. Breakout above upper band (~1,380 ₹) would confirm bullish momentum.
📊 Volume Trends: Current volume (16,28,967) is significantly above the 1-week average (7,33,204), showing strong participation and potential accumulation.
🎯 Entry Zone: 1,300–1,320 ₹ (near support, risk-managed entry).
🎯 Exit Zone: 1,380–1,420 ₹ (resistance zone, profit booking advisable).
📌 Momentum Signal: Neutral short-term momentum, consolidation phase with potential bullish reversal. A breakout above 1,380 ₹ could extend rally toward 1,450–1,500 ₹.
Positive
- Strong ROCE (32.9%) and ROE (24.6%) highlight efficient capital use.
- PEG ratio of 0.14 indicates attractive growth valuation.
- Debt-free balance sheet (Debt-to-equity ratio 0.00) ensures financial stability.
- Quarterly PAT growth from 46.2 Cr. to 47.8 Cr. (+23.8% variation).
- EPS of 23.9 ₹ reflects solid earnings base.
Limitation
- Stock trading below both 50 DMA and 200 DMA shows technical weakness.
- High P/E (55.9) compared to industry average (56.2) suggests valuation is stretched.
- Dividend yield is very low (0.15%), limiting investor returns.
Company Negative News
- Decline in FII holdings (-0.40%) and DII holdings (-0.07%) shows reduced institutional confidence.
Company Positive News
- Quarterly profit growth highlights operational improvement.
- Debt-free structure strengthens financial resilience.
Industry
- Industry P/E at 56.2 indicates sector is moderately valued, in line with ZENTEC’s valuation.
- 52-week index return of 29.6% shows healthy sector momentum.
Conclusion
⚖️ ZENTEC is consolidating near support with neutral momentum and potential bullish reversal. Entry near 1,300–1,320 ₹ offers limited risk, while exits should be considered around 1,380–1,420 ₹ unless strong breakout occurs. Fundamentally strong with attractive growth valuation, making it a promising technical play if volume-driven reversal sustains.