SUMICHEM - IntraDay Trade Analysis with Live Signals
Back to ListIntraDay Trade Rating: 3.4
| Stock Code | SUMICHEM | Market Cap | 19,372 Cr. | Current Price | 388 ₹ | High / Low | 665 ₹ |
| Stock P/E | 35.7 | Book Value | 64.0 ₹ | Dividend Yield | 0.31 % | ROCE | 25.1 % |
| ROE | 18.8 % | Face Value | 10.0 ₹ | DMA 50 | 414 ₹ | DMA 200 | 472 ₹ |
| Chg in FII Hold | -0.28 % | Chg in DII Hold | 0.18 % | PAT Qtr | 86.2 Cr. | PAT Prev Qtr | 178 Cr. |
| RSI | 41.4 | MACD | -8.52 | Volume | 4,51,458 | Avg Vol 1Wk | 3,37,915 |
| Low price | 367 ₹ | High price | 665 ₹ | PEG Ratio | 7.13 | Debt to equity | 0.02 |
| 52w Index | 7.22 % | Qtr Profit Var | 2.27 % | EPS | 10.6 ₹ | Industry PE | 22.2 |
🔎 Analysis: SUMICHEM is trading at ₹388, below its 50 DMA (₹414) and 200 DMA (₹472), showing short-term weakness. RSI at 41.4 indicates oversold conditions but lacks strong reversal signals. MACD (-8.52) remains negative, suggesting bearish momentum. Volume is higher than the 1-week average, showing active participation. Intraday trade is possible but requires strict stop-loss discipline.
💰 Optimal Buy Price: ₹382–₹388 if price stabilizes near support.
📈 Profit Exit Levels: ₹400 (first target), ₹414 (second target near 50 DMA).
📉 Stop-Loss: ₹375 to protect against downside risk.
⏱️ If Already Holding: Exit near ₹400 if momentum slows. Trail stop-loss below ₹382. Exit immediately if price breaks ₹375 with strong volume.
✅ Positive
- Strong ROCE at 25.1% and ROE at 18.8% indicate efficient capital usage.
- Debt-to-equity ratio is very low (0.02), showing strong balance sheet health.
- DII holdings increased (+0.18%), reflecting domestic investor confidence.
⚠️ Limitation
- Stock P/E (35.7) is significantly higher than industry average (22.2), making it expensive.
- PEG ratio of 7.13 suggests overvaluation relative to growth.
- Quarterly PAT declined (₹86.2 Cr vs ₹178 Cr), showing earnings pressure.
- RSI and MACD indicate weak momentum for intraday trading.
📉 Company Negative News
- Sequential decline in quarterly PAT highlights earnings weakness.
- FII holdings decreased (-0.28%), showing reduced foreign confidence.
📊 Company Positive News
- Strong ROCE and ROE support long-term fundamentals.
- Low debt-to-equity ratio enhances financial stability.
🌱 Industry
- Chemicals sector average P/E is 22.2, lower than SUMICHEM’s 35.7.
- Sector growth remains cyclical, influenced by global demand and raw material costs.
📝 Conclusion
SUMICHEM has strong fundamentals with high ROCE and low debt, but intraday trade setup is weak due to negative momentum indicators and declining earnings. Traders should only consider entry near ₹382–₹388 with a strict stop-loss at ₹375. Profit-taking should be quick at ₹400–₹414. Intraday caution is advised as momentum remains fragile.
Would you like me to also prepare a peer benchmarking overlay with other specialty chemical stocks like Aarti Industries, Deepak Nitrite, and PI Industries? That would help you see whether SUMICHEM’s intraday weakness is stock-specific or part of a broader sector trend.