ACC - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 3.2

📊 ACC shows strong fundamentals with low P/E compared to industry, robust EPS, and very low debt. However, technical indicators are weak — RSI at 30.6 suggests oversold conditions, MACD is negative, and price is below both 50 DMA and 200 DMA. This makes it a cautious candidate for swing trading, with potential rebound opportunities if support holds.

💡 Optimal Entry Price: Around 1,740–1,760 ₹ (near current support and 52-week low).

🚪 Exit Strategy: If already holding, consider exiting near 1,900–1,950 ₹ resistance or if price falls below 1,730 ₹ support.

✅ Positive

• 📈 Attractive P/E of 10.2 compared to industry average of 33.2, suggesting undervaluation.
• 💵 Very low debt-to-equity ratio (0.02), showing strong financial health.
• 📊 EPS of 177 ₹ supports earnings strength.
• 📈 PAT surged from 384 Cr. to 1,112 Cr., showing strong quarterly performance.
• 📉 FII holdings increased (+0.38%), reflecting foreign investor confidence.

⚠️ Limitation

• 📉 RSI at 30.6 indicates oversold territory, showing weak momentum.
• 📉 MACD negative (-24.2), confirming bearish trend.
• 📉 Price below both 50 DMA (1,827 ₹) and 200 DMA (1,905 ₹), signaling technical weakness.
• 📉 Dividend yield of 0.43% is modest for income investors.

🚨 Company Negative News

• 📉 DII holdings decreased (-1.58%), showing reduced domestic institutional interest.
• 📉 Weak technical indicators may limit short-term upside.

🌟 Company Positive News

• 📈 Quarterly profit growth (+376%) highlights strong operational performance.
• 📊 Strong ROCE (17.6%) and ROE (13.4%) indicate efficient capital use.
• 📈 Valuation remains attractive compared to peers, offering potential rebound opportunity.

🏭 Industry

• 📊 Industry PE is 33.2, much higher than ACC’s 10.2, suggesting ACC trades at a discount.
• 📈 Cement sector outlook remains steady, supported by infrastructure demand.

📝 Conclusion

⚖️ ACC is fundamentally strong and undervalued compared to industry peers, but technical weakness makes it a cautious swing trade candidate. Entry near 1,740–1,760 ₹ offers a favorable risk-reward setup, with exit near 1,900–1,950 ₹. Oversold RSI suggests potential rebound, but strict risk management is essential.

I can also prepare a comparison of ACC with peers like UltraTech Cement and Shree Cement to highlight relative swing trade opportunities. Would you like me to do that?