APLAPOLLO - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.6

📊 APL Apollo shows strong technical momentum with price trading above both 50 DMA and 200 DMA, RSI at 62.6 indicating bullish strength, and MACD positive. Fundamentals are mixed — while ROCE and ROE are decent, the P/E of 110 is extremely high compared to industry average (20.6), and EPS remains modest. Institutional buying (FII +0.67%, DII +2.09%) adds confidence. This makes APL Apollo a fair candidate for swing trading, but valuation risk must be managed carefully.

💡 Optimal Entry Price: Around 1,740–1,760 ₹ (near 50 DMA support).

🚪 Exit Strategy: If already holding, consider exiting near 1,900–1,930 ₹ resistance or if price falls below 1,720 ₹ support.

✅ Positive

• 📈 Price trading above 50 DMA (1,741 ₹) and 200 DMA (1,681 ₹), confirming bullish trend.
• 💵 Institutional support with FII (+0.67%) and DII (+2.09%) holding increases.
• 📊 Strong quarterly profit growth (+1,695%) highlights operational recovery.
• 📉 Healthy trading liquidity with volume ~5.9 lakh shares.
• 📈 52-week performance at 82.6% shows strong investor demand.

⚠️ Limitation

• 📉 Extremely high P/E (110) compared to industry average (20.6), suggesting overvaluation.
• 📉 EPS of 16.6 ₹ is modest relative to price.
• 📉 PEG ratio of -8.11 indicates poor growth alignment with valuation.
• 📉 Dividend yield of 0.32% offers limited income return.

🚨 Company Negative News

• 📉 PAT declined slightly from 116 Cr. to 106 Cr. sequentially.
• 📉 Valuation multiples remain stretched, raising risk of correction.

🌟 Company Positive News

• 📈 Strong quarterly profit growth (+1,695%) compared to previous year.
• 📊 Institutional buying (FII and DII increases) reflects confidence in the company.
• 📈 Consistent price momentum supported by technical indicators.

🏭 Industry

• 📊 Industry PE is 20.6, far lower than APL Apollo’s 110, showing premium valuation.
• 📈 Steel and structural products sector outlook remains positive, supported by infrastructure demand.

📝 Conclusion

⚖️ APL Apollo is technically strong and supported by institutional buying, making it a fair swing trade candidate. Entry near 1,740–1,760 ₹ with exit near 1,900–1,930 ₹ offers a favorable setup. However, stretched valuation and modest EPS require strict risk management.

I can also prepare a side-by-side comparison of APL Apollo with peers like Tata Steel and JSW Steel to highlight relative swing trade opportunities. Would you like me to do that?