ACMESOLAR - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.5
| Stock Code | ACMESOLAR | Market Cap | 23,843 Cr. | Current Price | 338 ₹ | High / Low | 365 ₹ |
| Stock P/E | 72.8 | Book Value | 81.7 ₹ | Dividend Yield | 0.06 % | ROCE | 9.27 % |
| ROE | 6.89 % | Face Value | 2.00 ₹ | DMA 50 | 307 ₹ | DMA 200 | 270 ₹ |
| Chg in FII Hold | -0.10 % | Chg in DII Hold | 12.2 % | PAT Qtr | 266 Cr. | PAT Prev Qtr | 31.7 Cr. |
| RSI | 59.3 | MACD | 11.3 | Volume | 13,56,700 | Avg Vol 1Wk | 16,53,715 |
| Low price | 196 ₹ | High price | 365 ₹ | PEG Ratio | 0.82 | Debt to equity | 0.86 |
| 52w Index | 84.0 % | Qtr Profit Var | 2,760 % | EPS | 5.61 ₹ | Industry PE | 27.5 |
ACME Solar shows moderate potential for swing trading. Technical indicators (RSI 59.3, MACD positive, price above 50DMA and 200DMA) suggest bullish momentum. Fundamentals are mixed: strong quarterly profit growth (2,760% variation) and rising DII holdings, but high P/E (72.8 vs industry 27.5), low ROCE/ROE, and relatively high debt-to-equity (0.86) raise caution. The optimal entry price is near 310–315 ₹ (close to 50DMA support). If already holding, consider exiting near 360–365 ₹, close to recent highs, unless momentum continues strongly.
✅ Positive
- 📈 Strong quarterly PAT growth (266 Cr vs 31.7 Cr).
- 💹 Price trading above 50DMA (307 ₹) and 200DMA (270 ₹), confirming bullish trend.
- 📊 Increase in DII holding (+12.2%), showing strong domestic institutional support.
- 💰 PEG ratio (0.82) suggests reasonable valuation relative to growth.
⚠️ Limitation
- 📉 Very high P/E (72.8) compared to industry average (27.5).
- 📊 Weak ROCE (9.27%) and ROE (6.89%), showing poor efficiency.
- 📉 Debt-to-equity ratio at 0.86, higher than peers, adding financial risk.
- 📊 Dividend yield very low at 0.06%, limiting income potential.
📰 Company Negative News
- 📉 Decline in FII holding (-0.10%), reflecting reduced foreign investor confidence.
🌟 Company Positive News
- 📈 Massive quarterly profit turnaround (2,760% growth).
- 📊 Strong support from domestic institutions (+12.2% DII holding).
🏭 Industry
- 📊 Industry PE at 27.5, much lower than ACME Solar’s 72.8, highlighting overvaluation risk.
- 📈 Renewable energy sector showing strong demand and long-term growth potential.
📌 Conclusion
ACME Solar is technically strong with strong institutional support and profit growth, but valuations are stretched and efficiency metrics are weak. It can be considered for short-term swing trades with entry near support (310–315 ₹) and exit near resistance (360–365 ₹). Long-term investors should be cautious due to high debt and overvaluation.
Would you like me to extend this with a renewable energy sector outlook or a peer comparison to refine the swing trade strategy?