ACMESOLAR - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 2.5

📊 ACMESOLAR presents weak fundamentals with an extremely high P/E (656), low EPS, and modest ROCE/ROE. Technical indicators are also soft — RSI at 47.3 shows neutral momentum, MACD is negative, and price is below both 50 DMA and 200 DMA. While recent PAT improved sharply compared to the previous quarter, overall profit variation remains negative. This makes ACMESOLAR a high-risk candidate for swing trading, suitable only for aggressive traders with strict stop-loss discipline.

💡 Optimal Entry Price: Around 220–225 ₹ (near short-term support).

🚪 Exit Strategy: If already holding, consider exiting near 250–255 ₹ resistance or if price falls below 215 ₹ support.

✅ Positive

• 📈 Strong quarterly PAT recovery (29.4 Cr. vs 0.81 Cr. previous quarter).
• 💵 Reasonable trading liquidity with volume ~8.16 lakh shares.
• 📊 Sector tailwinds from renewable energy demand support long-term outlook.

⚠️ Limitation

• 📉 Extremely high P/E (656) compared to industry average (26.7), showing severe overvaluation.
• 📉 EPS of 0.38 ₹ is very weak relative to price.
• 📉 PEG ratio of 11.9 indicates expensive growth.
• 📉 Dividend yield of 0.09% offers negligible income return.
• 📉 Debt-to-equity ratio of 0.64 is relatively high for the sector.

🚨 Company Negative News

• 📉 Quarterly profit variation (-35.7%) shows inconsistency in earnings.
• 📉 FII holdings decreased (-0.19%) and DII holdings decreased (-0.22%), reflecting reduced institutional confidence.

🌟 Company Positive News

• 📈 PAT recovery in the latest quarter highlights operational improvement.
• 📊 Market cap of 14,089 Cr. ensures reasonable liquidity.
• 📈 Renewable energy sector positioning supports long-term investor interest.

🏭 Industry

• 📊 Industry PE is 26.7, far lower than ACMESOLAR’s 656, indicating severe overvaluation.
• 📈 Renewable energy industry outlook remains positive, driven by government initiatives and demand growth.

📝 Conclusion

⚖️ ACMESOLAR is fundamentally weak and highly overvalued compared to peers, making it a risky swing trade candidate. Entry near 220–225 ₹ may offer short-term opportunities, but exit should be considered near 250–255 ₹ or on breakdown below 215 ₹. Strict risk management is essential given volatile earnings and stretched valuation.

I can also prepare a comparison of ACMESOLAR with other renewable energy stocks like Adani Green and Tata Power to highlight relative swing trade opportunities. Would you like me to do that?