AKUMS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 2.7

📊 AKUMS currently shows weak swing trading potential. The RSI at 43.9 suggests neutral momentum, while the MACD (-4.83) indicates bearish pressure. The stock is trading below both the 50 DMA (438 ₹) and 200 DMA (506 ₹), confirming a downtrend. Optimal entry would be near the support zone around 410–415 ₹. If already holding, consider exiting near 440–450 ₹, where resistance from the 50 DMA is strong.

✅ Positive

• 📈 Debt-to-equity ratio of 0.02 shows a virtually debt-free balance sheet.
• 📊 ROCE (16.2%) and ROE (13.2%) reflect moderate efficiency in capital use.
• 💹 DII holdings increased (+0.43%), showing some domestic investor confidence.
• 📈 PEG ratio of 1.43 suggests fair valuation relative to growth.

⚠️ Limitation

• 📉 P/E of 49.1 is significantly higher than industry average (30.6), indicating overvaluation.
• 📉 Quarterly profit dropped 53.4% (PAT fell from 44.9 Cr. to 23.5 Cr.).
• 📉 FII holding decreased (-1.97%), showing reduced foreign investor interest.
• 📉 Price below DMA 50 & DMA 200, confirming bearish trend.

🚨 Company Negative News

Sharp decline in quarterly profits (-53.4%) raises concerns about earnings stability. Weak technical indicators (negative MACD, price below moving averages) highlight short-term weakness. Reduced FII participation adds to bearish sentiment.

🌟 Company Positive News

Debt-free balance sheet provides financial stability. Domestic institutional investors increased holdings, showing confidence. PEG ratio indicates valuation is not excessively stretched compared to growth potential.

🏭 Industry

The pharmaceutical industry trades at an average P/E of 30.6, while AKUMS trades at 49.1, making it relatively expensive compared to peers. The sector outlook remains positive, but AKUMS’s earnings decline limits near-term attractiveness.

📌 Conclusion

AKUMS is a weak candidate for swing trading due to declining profits and bearish technicals. Entry near 410–415 ₹ offers limited upside. Exit strategy should target 440–450 ₹ to avoid downside risk. Long-term investors may still find value in its debt-free structure, but swing traders should remain cautious.

Would you like me to also outline a short-term stop-loss level for AKUMS to help manage risk more effectively?