ARE&M - IntraDay Trade Analysis with Live Signals
Back to ListIntraDay Trade Rating: 3.6
| Stock Code | ARE&M | Market Cap | 16,177 Cr. | Current Price | 885 ₹ | High / Low | 1,109 ₹ |
| Stock P/E | 20.0 | Book Value | 425 ₹ | Dividend Yield | 1.19 % | ROCE | 16.8 % |
| ROE | 12.3 % | Face Value | 1.00 ₹ | DMA 50 | 896 ₹ | DMA 200 | 974 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 0.88 % | PAT Qtr | 212 Cr. | PAT Prev Qtr | 194 Cr. |
| RSI | 54.7 | MACD | -19.3 | Volume | 7,70,218 | Avg Vol 1Wk | 4,62,823 |
| Low price | 805 ₹ | High price | 1,109 ₹ | PEG Ratio | 1.01 | Debt to equity | 0.04 |
| 52w Index | 26.4 % | Qtr Profit Var | -12.1 % | EPS | 53.3 ₹ | Industry PE | 28.7 |
📊 Analysis: ARE&M is trading at ₹885, slightly below its 50 DMA (₹896) and well below its 200 DMA (₹974), reflecting short-term weakness. RSI at 54.7 indicates neutral momentum, while MACD (-19.3) shows bearish crossover. Intraday volume (7,70,218) is higher than the weekly average (4,62,823), suggesting strong participation. Fundamentals are decent with ROCE (16.8%), ROE (12.3%), and low debt-to-equity (0.04). Valuation is attractive (P/E 20.0 vs industry 28.7, PEG 1.01), but quarterly profit variation (-12.1%) raises caution. Intraday trading potential exists with momentum-driven moves.
💡 Optimal Buy Price: ₹875–880 if price consolidates near support.
🎯 Profit-Taking Levels: ₹900–910 (near 50 DMA resistance).
🛡️ Stop-Loss: ₹865 to protect against downside risk.
⏱️ Exit Strategy (if already holding): Exit if price fails to sustain above ₹900 with strong volume. Momentum indicators suggest limited upside, so profit booking should be considered near resistance levels to avoid reversal risk.
Positive
- Attractive valuation with P/E (20.0) below industry average (28.7).
- Strong EPS of ₹53.3 supports earnings visibility.
- Low debt-to-equity ratio (0.04) ensures financial stability.
- DII holding increased by 0.88%, showing domestic institutional support.
- Intraday volume higher than average, indicating active participation.
Limitation
- Trading below both 50 DMA and 200 DMA, showing bearish trend.
- MACD negative crossover indicates short-term weakness.
- Quarterly PAT declined from ₹194 Cr. to ₹212 Cr. (-12.1%).
- FII holding decreased by 0.60%, showing reduced foreign interest.
Company Negative News
- No major negative news reported, but earnings decline raises caution.
Company Positive News
- EPS of ₹53.3 reflects strong profitability.
- Quarterly PAT growth compared to previous quarter shows resilience despite YoY decline.
Industry
- Industry P/E at 28.7 indicates sector is moderately valued.
- Automotive and engineering sector benefiting from infrastructure growth and demand recovery.
Conclusion
⚖️ ARE&M shows decent fundamentals and strong intraday participation but weak technical momentum. It is a moderate candidate for intraday trading with entry near ₹875–880 and profit-taking around ₹900–910. Traders should closely monitor volume and momentum indicators before committing to positions.