APLAPOLLO - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Analysis for APL Apollo Tubes Ltd. 🏗️

🔢 Swing Trade Rating

Rating: 3.5

APLAPOLLO displays promising long-term fundamentals, but its current technical condition points to caution for short-term swing trading. It's sitting in oversold territory with signs of weakness, yet institutional confidence and strong returns may support a rebound.

✅ Strengths

Robust Profitability: ROCE of 22.8% and ROE of 19.4% reflect excellent operational efficiency.

Low Leverage: Debt-to-equity ratio of 0.15 provides financial stability during volatile periods.

Quarterly Earnings Still Strong: PAT remains healthy at ₹237 Cr. despite decline from ₹293 Cr.

FII Inflow: Increase of 1.27% shows foreign institutional support.

EPS ₹28.9 with P/E of 52.5 vs. Industry P/E of 23.8 = premium valuation.

❌ Weaknesses

Technical Indicators Bearish: RSI at 25.7 and MACD -55.0 signal oversold conditions with downward momentum.

Volume Decline: Current volume (8.3L) is significantly below 1-week average (14.4L), showing reduced participation.

High PEG Ratio (7.58): Implies overvaluation relative to growth potential.

Trading Near Yearly Low: 52W Index at 38.4% hints at underperformance across the year.

DII Activity Flat: Very mild domestic interest suggests lukewarm sentiment.

🎯 Optimal Entry Strategy

If you’re considering entering, wait for signs of stabilization around ₹1,470–₹1,490, especially if RSI crosses above 30 and MACD flattens. This zone is close to recent support and may provide a bounce opportunity.

💼 Exit Strategy (If Holding)

Initial Target Zone: ₹1,620–₹1,700 (around DMA 200 and DMA 50)

Bullish Target: ₹1,800–₹1,850 if momentum picks up and volume strengthens

Stop Loss: ₹1,460 to mitigate further downside risk below recent support levels

🧠 Final Thought

APLAPOLLO is fundamentally solid but needs confirmation of trend reversal before entering. If you’re already in, patience is key—trim positions at moving averages and monitor RSI/volume for strength. A tactical watchlist candidate with swing potential once sentiment turns.

Want to layer in Fibonacci retracement levels or peer comparisons next? I can help chart that strategy. 📊💡

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