ARE&M - Swing Trade Analysis

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

Swing Trade Rating: 3.7

ARE&M (likely referring to Arvind Remedies or a similar entity) presents a moderately appealing swing trade setup, characterized by stable fundamentals and technical support near key moving averages. While momentum is trying to build, weak recent earnings and FII/DII outflows temper enthusiasm.

✅ Strength Snapshot

P/E of 21.5 vs Industry 31.2: Attractively valued for earnings.

EPS (₹51.6) and Book Value (₹404)** offer good intrinsic strength.

MACD (2.34): Positive, suggests brewing short-term bullishness.

Debt-Light (0.04): Strong financial hygiene supports flexibility.

Dividend Yield (1.06%): Provides minimal cushion for holding.

ROCE (16.2%) & ROE (11.9%): Efficient capital use.

❌ Risk Factors

Quarterly Profit Drop (-29.7%): From ₹222 Cr. to ₹162 Cr. implies earnings pressure.

Momentum Still Shaky: RSI at 52.1 is mid-range; not yet confirming bullish breakout.

FII/DII Pullback: Net selling from both categories hints at cautious sentiment.

Price Below DMA200 (₹1,062): Bearish tilt unless reclaimed.

Low 52W Index (21.5%): Much ground to cover back to ₹1,680 high.

📥 Entry Recommendation

Entry Zone: ₹975–₹995

Confirmation conditions

RSI rises above 55

MACD slope strengthens

Price closes above DMA50 ₹992 for 2 consecutive sessions

Volume exceeds 7.25L

🚪 Exit Strategy (If Holding)

Initial Target: ₹1,050–₹1,070 (approaching DMA200)

Mid-Term Target: ₹1,120–₹1,150 (based on historical resistance)

Stretch Exit: ₹1,200+ (only if RSI crosses 65 and momentum sustains)

Stop Loss: ₹955 (protect downside near psychological support)

🧠 Final Word

ARE&M is in a transition phase. Technically it's hugging support, and the fundamentals are decent, but it's still feeling the sting of earnings disappointment and cautious institutional behavior. Treat this as a range-bound candidate with tight stops and keep an eye on price reclaiming the 200-DMA.

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