AMBUJACEM - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📊 AMBUJACEM shows moderate potential for swing trading. The RSI at 41.9 suggests neutral momentum, while the MACD (-4.04) indicates mild bearishness. The price is slightly below the 50 DMA (553 ₹) and 200 DMA (561 ₹), showing resistance overhead. Optimal entry would be near 525–535 ₹, close to support levels. If already holding, consider exiting near 560–575 ₹, with potential extension to 600 ₹ if momentum strengthens.

✅ Positive

• 📈 Quarterly profit growth (+214%) shows strong earnings recovery.
• 💰 Low debt-to-equity ratio (0.02) reflects financial stability.
• 📊 DII holdings increased (+0.92%), showing domestic investor confidence.
• 💹 52-week gain of 50.2% highlights strong long-term investor interest.

⚠️ Limitation

• 📉 ROCE (8.80%) and ROE (8.77%) are modest compared to peers.
• 📉 FII holdings decreased (-1.52%), reflecting reduced foreign investor interest.
• 📉 Price below DMA 50 & DMA 200, confirming short-term weakness.
• 📉 Dividend yield of 0.37% is relatively low.

🚨 Company Negative News

Foreign institutional investors reduced holdings (-1.52%), showing cautious sentiment. Technical indicators remain weak with price below key moving averages. Efficiency ratios (ROCE, ROE) are modest.

🌟 Company Positive News

Quarterly profits surged (+214%), reflecting strong operational performance. Domestic institutional investors increased holdings, showing confidence. Low debt levels provide financial resilience, and long-term performance remains strong.

🏭 Industry

The cement industry trades at an average P/E of 33.2, while AMBUJACEM trades at 26.2, making it relatively cheaper compared to peers. Sector demand remains robust, supporting medium-term opportunities.

📌 Conclusion

AMBUJACEM is a moderate candidate for swing trading. Entry near 525–535 ₹ offers a favorable risk-reward setup. Exit strategy should target 560–575 ₹, with potential upside toward 600 ₹ if momentum improves. Traders should remain cautious due to weak technicals but can benefit from strong earnings growth and sector support.

I can also outline a stop-loss level around 510 ₹ to help manage downside risk more effectively.