ARE&M - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

✅ Swing Trade Rating: 3.6

Entry Zone: ₹970–₹990 (only if RSI > 46 and MACD sustains)

Exit if held: ₹1,040–₹1,070 (near 200 DMA and resistance zone)

📊 Technical & Fundamental Snapshot

• 📉 Current Price: ₹993
• 📉 52W High/Low: ₹1,374 / ₹805
• 📉 RSI: 43.9 (neutral to weak)
• 📈 MACD: 0.56 (mild bullish crossover)
• 📈 Volume: 4.25L vs 1W Avg 3.36L (above average)
• 📉 FII Holding Change: -1.42%
• 📈 DII Holding Change: +2.24%
• 📈 P/E: 21.8 vs Industry 32.8 (undervalued)
• 📈 PEG Ratio: 1.10 (fair growth pricing)

✅ Positive

• 📈 ROCE & ROE: 16.8% and 12.3% — solid capital efficiency.
• 📉 Low Debt: Debt-to-equity at 0.04 — conservative leverage.
• 📈 EPS: ₹49.9 — strong earnings base.
• 📈 DII Accumulation: Domestic institutions increased stake significantly.
• 📈 MACD Positive: Indicates early momentum shift.

⚠️ Limitation

• 📉 RSI < 46: No confirmation of bullish strength.
• 📉 FII Exit: Foreign investors trimmed stake.
• 📉 Below DMA 200: Price still under long-term average — trend not fully confirmed.
• 📉 Qtr Profit Var: -20.7% — sequential decline in profitability.

🚨 Company Negative News

• 📉 Q2FY26 Commentary: Management flagged margin pressure due to lithium sourcing volatility and EV transition costs.
• 📉 FII Sentiment: Reduced exposure amid valuation concerns and global rotation.

📈 Company Positive News

• 🚀 EPS Growth Forecast: 12.1% CAGR over next 3 years — supported by energy storage and mobility expansion.
• 📈 Revenue Growth: Expected to grow at 6.8% annually — driven by EV battery and mobility solutions.
• 📦 Board Meeting: Scheduled for Nov 6 to announce interim dividend and Q2 results.
• 📈 Price Target: Analyst consensus revised to ₹1,294–₹1,375 post Q1 beat.

🔌 Industry

• 📈 EV & Energy Storage: Sector gaining traction with government incentives and rising demand.
• 📉 Raw Material Risk: Lithium and rare earth pricing volatility impacting margins.

🧾 Conclusion

• ⚠️ Not ideal for aggressive swing entry unless RSI > 46 and MACD sustains with volume confirmation.
• 📤 If already held, exit near ₹1,040–₹1,070 (DMA resistance zone).
• 📈 Fundamentals strong, technicals stabilizing — suitable for alert-driven tactical trades with basket overlay.

Sources

Simply Wall St – ARE&M Forecast

Trendlyne – Analyst Targets & Board Meeting

Stock Price Archive – Technical Outlook