SONACOMS - IntraDay Trade Analysis with Live Signals
Back to ListIntraDay Trade Rating: 4.1
| Stock Code | SONACOMS | Market Cap | 33,150 Cr. | Current Price | 533 ₹ | High / Low | 560 ₹ |
| Stock P/E | 52.6 | Book Value | 89.7 ₹ | Dividend Yield | 0.60 % | ROCE | 18.3 % |
| ROE | 14.2 % | Face Value | 10.0 ₹ | DMA 50 | 481 ₹ | DMA 200 | 488 ₹ |
| Chg in FII Hold | 0.42 % | Chg in DII Hold | 0.61 % | PAT Qtr | 183 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 71.6 | MACD | 10.5 | Volume | 21,75,759 | Avg Vol 1Wk | 40,32,901 |
| Low price | 380 ₹ | High price | 560 ₹ | PEG Ratio | 2.93 | Debt to equity | 0.03 |
| 52w Index | 85.2 % | Qtr Profit Var | 26.0 % | EPS | 9.50 ₹ | Industry PE | 28.7 |
📊 Analysis: SONACOMS is trading at ₹533, close to its 52-week high of ₹560, reflecting strong bullish momentum. RSI at 71.6 indicates overbought conditions, suggesting caution for fresh entries. MACD (10.5) remains positive, supporting upward bias. The stock is well above its 50 DMA (₹481) and 200 DMA (₹488), confirming medium-term strength. Current volume (21.7 lakh) is below the 1-week average (40.3 lakh), showing reduced intraday participation. Fundamentals are solid with EPS of ₹9.5, ROCE at 18.3%, and ROE at 14.2%, though valuations are stretched with a P/E of 52.6 compared to industry PE of 28.7.
💡 Optimal Buy Price: ₹528–533 near support levels.
🎯 Profit-Taking Exit Levels: ₹545–555 (short-term resistance zone).
🛑 Stop-Loss Protection: ₹520 (below immediate support).
⏱️ Intraday Exit Strategy: If already holding, consider exiting near ₹545–555 if RSI remains above 70 or if volume momentum weakens. Exit immediately if price breaks below ₹520 with strong selling pressure.
✅ Positive
- EPS of ₹9.5 with strong profitability.
- ROCE at 18.3% and ROE at 14.2% reflect efficient capital usage.
- Debt-to-equity ratio of 0.03 indicates virtually debt-free balance sheet.
- Quarterly PAT improved from ₹168 Cr. to ₹183 Cr. (+26%).
- Both FII (+0.42%) and DII (+0.61%) holdings increased, showing institutional confidence.
⚠️ Limitation
- High P/E of 52.6 compared to industry PE of 28.7.
- PEG ratio of 2.93 suggests expensive valuation relative to growth.
- RSI above 70 indicates overbought conditions, limiting upside potential.
- Volume below average, reducing intraday momentum strength.
📉 Company Negative News
- Stock trading near overbought levels, increasing risk of short-term correction.
📈 Company Positive News
- Quarterly PAT growth supports earnings momentum.
- Strong efficiency metrics (ROCE and ROE).
- 52-week index at 85.2% highlights strong long-term performance.
🏭 Industry
- Industry PE at 28.7, much lower than SONACOMS’s PE, indicating overvaluation.
- Auto components sector remains in demand with cyclical growth opportunities.
🔎 Conclusion
SONACOMS shows strong fundamentals and bullish technicals, making it a good intraday candidate. Traders can consider buying near ₹528–533 with a strict stop-loss at ₹520 and aim for exits around ₹545–555. Risk management is essential given stretched valuations and overbought RSI, but strong profitability and institutional support favor short-term bullish opportunities.