AMBER - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.9
| Stock Code | AMBER | Market Cap | 27,852 Cr. | Current Price | 7,887 ₹ | High / Low | 8,974 ₹ |
| Stock P/E | 185 | Book Value | 870 ₹ | Dividend Yield | 0.00 % | ROCE | 10.2 % |
| ROE | 6.06 % | Face Value | 10.0 ₹ | DMA 50 | 7,628 ₹ | DMA 200 | 7,267 ₹ |
| Chg in FII Hold | -3.02 % | Chg in DII Hold | 4.06 % | PAT Qtr | 84.3 Cr. | PAT Prev Qtr | 46.4 Cr. |
| RSI | 54.9 | MACD | 30.8 | Volume | 18,33,892 | Avg Vol 1Wk | 7,12,800 |
| Low price | 5,400 ₹ | High price | 8,974 ₹ | PEG Ratio | 4.22 | Debt to equity | 0.63 |
| 52w Index | 69.6 % | Qtr Profit Var | 5.91 % | EPS | 41.4 ₹ | Industry PE | 48.6 |
AMBER shows weak fundamentals for swing trading despite strong price momentum. The stock trades at a very high P/E of 185 compared to the industry average of 48.6, indicating significant overvaluation. ROCE (10.2%) and ROE (6.06%) are modest, while debt-to-equity at 0.63 adds leverage risk. EPS is low at 41.4 ₹ relative to price, and the PEG ratio of 4.22 signals overvaluation against growth. Quarterly profit improved slightly (84.3 Cr. vs 46.4 Cr.), but RSI at 54.9 is neutral. MACD is positive (30.8), showing short-term momentum, yet the stock is trading close to its 52-week high (8,974 ₹), limiting upside potential.
💡 Optimal Entry Price: Around 7,500–7,600 ₹, closer to DMA 50 (7,628 ₹) for better risk-reward.
📈 Exit Strategy: If already holding, consider exiting near 8,200–8,400 ₹ or on weakness if RSI drops below 50.
✅ Positive
- 📊 Strong quarterly profit growth (PAT 84.3 Cr. vs 46.4 Cr.).
- 📈 Trading above DMA 50 (7,628 ₹) and DMA 200 (7,267 ₹), showing bullish undertones.
- 🌍 Increase in DII holding (+4.06%).
- 📊 High trading volumes (~18.3 lakh shares), indicating liquidity.
⚠️ Limitation
- 📉 Extremely high P/E ratio (185) vs industry average (48.6).
- 📊 Weak ROCE (10.2%) and ROE (6.06%).
- 📉 Negative impact from high debt to equity ratio (0.63).
- 📊 PEG ratio of 4.22 suggests overvaluation relative to growth.
- 📉 Decline in FII holding (-3.02%).
📰 Company Negative News
- ⚠️ Valuation concerns due to extremely high P/E.
- 📉 Modest profitability metrics despite large market cap.
🌟 Company Positive News
- 🚀 Quarterly profit improved by ~81% compared to previous quarter.
- 📊 Strong investor interest reflected in high trading volumes.
- 🌍 Increase in DII holdings supports confidence.
🏭 Industry
- 📈 Industry P/E at 48.6, much lower than company’s 185, highlighting premium valuation.
- 🌍 Consumer durables industry outlook remains favorable, but AMBER trades at a steep premium.
📌 Conclusion
AMBER is not an ideal swing trade candidate at current levels due to stretched valuations and modest efficiency metrics. Entry is safer around 7,500–7,600 ₹ near DMA 50. If already holding, exit near 8,200–8,400 ₹ to lock in gains. Short-term traders should remain cautious as momentum may fade quickly given overvaluation and leverage risks.