⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

AARTIIND - Swing Trade Analysis with AI Signals

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Rating: 3.8

Last Updated Time : 05 May 26, 02:25 pm

📊 Swing Trade Rating: 3.8

Stock Code AARTIIND Market Cap 18,616 Cr. Current Price 513 ₹ High / Low 523 ₹
Stock P/E 50.4 Book Value 158 ₹ Dividend Yield 0.19 % ROCE 6.43 %
ROE 6.22 % Face Value 5.00 ₹ DMA 50 441 ₹ DMA 200 420 ₹
Chg in FII Hold 0.68 % Chg in DII Hold 1.90 % PAT Qtr 146 Cr. PAT Prev Qtr 80.0 Cr.
RSI 77.1 MACD 22.1 Volume 18,92,280 Avg Vol 1Wk 18,93,411
Low price 338 ₹ High price 523 ₹ PEG Ratio -1.48 Debt to equity 0.69
52w Index 94.6 % Qtr Profit Var 211 % EPS 10.4 ₹ Industry PE 29.2

Analysis: AARTIIND is showing strong short-term momentum with the current price (₹513) near its 52-week high (₹523). The stock is trading well above both 50 DMA (₹441) and 200 DMA (₹420), confirming bullish sentiment. RSI at 77.1 indicates overbought conditions, suggesting caution. MACD is strongly positive, reflecting momentum. However, the high P/E of 50.4 compared to industry PE of 29.2 and weak ROE/ROCE (around 6%) raise concerns about valuation and efficiency. The recent surge in quarterly profits (211% growth) is encouraging, but sustainability is uncertain.

Optimal Entry Price: ₹480–490 (closer to 50 DMA support, safer entry).

Exit Strategy: If already holding, consider profit booking near ₹520–523 (recent resistance zone).

✅ Positive

  • Quarterly PAT jumped from ₹80 Cr. to ₹146 Cr. (211% growth).
  • Price trading well above both 50 DMA and 200 DMA.
  • Strong investor interest with increased FII (+0.68%) and DII (+1.90%) holdings.
  • Debt-to-equity ratio at 0.69, relatively manageable.

⚠️ Limitation

  • High P/E ratio (50.4) compared to industry average (29.2).
  • ROE (6.22%) and ROCE (6.43%) are weak, showing low efficiency.
  • PEG ratio is negative (-1.48), indicating poor valuation relative to growth.
  • RSI at 77.1 signals overbought conditions, risk of pullback.

📉 Company Negative News

  • Valuation concerns due to high P/E and weak returns on capital.

📈 Company Positive News

  • Strong quarterly profit growth (PAT up 211%).
  • Institutional investors (FII & DII) increased holdings.

🏭 Industry

  • Industry PE at 29.2, lower than company’s P/E, suggesting sector is moderately valued.
  • Chemicals sector has cyclical demand but benefits from industrial growth.

🔎 Conclusion

AARTIIND is a momentum-driven candidate for swing trading but currently overbought. Entry near ₹480–490 offers better risk-reward. If holding, exit near ₹520–523 to lock in gains. Watch valuation risks and efficiency metrics closely as they may limit long-term upside.

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