ACE - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.3

📊 ACE shows strong fundamentals with excellent ROCE (40.1%) and ROE (28.5%), low debt, and consistent profit growth. However, technical indicators are weak — RSI at 38.2 suggests oversold conditions, MACD is negative, and price is trading below both 50 DMA (1,005 ₹) and 200 DMA (1,110 ₹). Valuation is reasonable with a P/E of 25.9 compared to industry average of 33.9, but low trading volume relative to average raises caution. This makes ACE a fair candidate for swing trading with potential rebound opportunities near support levels.

💡 Optimal Entry Price: Around 915–930 ₹ (near support zone close to 52-week low).

🚪 Exit Strategy: If already holding, consider exiting near 1,000–1,050 ₹ resistance or if price falls below 910 ₹ support.

✅ Positive

• 📈 Strong ROCE (40.1%) and ROE (28.5%) highlight excellent operational efficiency.
• 💵 Low debt-to-equity ratio (0.08), showing financial stability.
• 📊 EPS of 35.8 ₹ supports earnings strength.
• 📈 PAT growth from 96.8 Cr. to 104 Cr. (+10.1%) shows improving profitability.
• 📉 Valuation attractive with P/E (25.9) below industry average (33.9).

⚠️ Limitation

• 📉 RSI at 38.2 indicates weak momentum.
• 📉 MACD negative (-19.6), confirming bearish undertone.
• 📉 Price below both 50 DMA and 200 DMA, signaling technical weakness.
• 📉 Dividend yield of 0.22% offers limited income return.
• 📉 Trading volume (1.68 lakh vs avg 5.22 lakh) is lower, indicating reduced liquidity.

🚨 Company Negative News

• 📉 FII holdings decreased (-1.08%), showing reduced foreign investor confidence.
• 📉 DII holdings decreased (-0.22%), reflecting weaker domestic institutional support.

🌟 Company Positive News

• 📈 PAT growth quarter-on-quarter highlights operational improvement.
• 📊 Strong fundamentals with high ROCE and ROE continue to attract investors.
• 📈 Valuation remains attractive compared to industry peers.

🏭 Industry

• 📊 Industry PE is 33.9, higher than ACE’s 25.9, suggesting ACE trades at a discount.
• 📈 Construction equipment sector outlook remains positive, supported by infrastructure growth and government initiatives.

📝 Conclusion

⚖️ ACE is fundamentally strong but technically weak, making it a cautious swing trade candidate. Entry near 915–930 ₹ offers a favorable risk-reward setup, with exit near 1,000–1,050 ₹. Oversold RSI suggests potential rebound, but strict risk management is essential given weak technicals and reduced liquidity.

I can also prepare a peer comparison of ACE with other construction equipment companies like JCB India and L&T to highlight relative swing trade opportunities. Would you like me to do that?