ARE&M - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | ARE&M | Market Cap | 14,087 Cr. | Current Price | 769 ₹ | High / Low | 1,109 ₹ |
| Stock P/E | 18.6 | Book Value | 425 ₹ | Dividend Yield | 1.37 % | ROCE | 16.8 % |
| ROE | 12.3 % | Face Value | 1.00 ₹ | DMA 50 | 842 ₹ | DMA 200 | 936 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 0.88 % | PAT Qtr | 183 Cr. | PAT Prev Qtr | 212 Cr. |
| RSI | 32.5 | MACD | -23.0 | Volume | 2,81,988 | Avg Vol 1Wk | 3,96,775 |
| Low price | 759 ₹ | High price | 1,109 ₹ | PEG Ratio | 0.94 | Debt to equity | 0.04 |
| 52w Index | 3.01 % | Qtr Profit Var | -22.1 % | EPS | 44.5 ₹ | Industry PE | 23.7 |
📊 ARE&M shows moderate fundamentals but weak technicals, making it a cautious candidate for swing trading. The RSI at 32.5 indicates oversold conditions, while MACD remains negative (-23.0), confirming bearish momentum. The stock is trading below both its 50 DMA (842 ₹) and 200 DMA (936 ₹), reflecting short-term weakness. Fundamentals are fair with ROCE (16.8%) and ROE (12.3%), while P/E (18.6) is lower than industry average (23.7), suggesting reasonable valuation. PAT declined (183 Cr vs. 212 Cr), and EPS stands at 44.5 ₹. Institutional activity is mixed, with FII holdings down (-0.60%) but DII holdings up (+0.88%).
💡 Optimal Entry Price: Around 760–770 ₹ (near support zone).
📈 Exit Strategy if Holding: Consider exiting near 840–850 ₹ (close to 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- Reasonable P/E (18.6) compared to industry average (23.7).
- ROCE (16.8%) and ROE (12.3%) show moderate efficiency.
- Debt-to-equity ratio at 0.04 indicates low leverage.
- DII holdings increased (+0.88%), reflecting domestic institutional confidence.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA indicates bearish trend.
- Quarterly PAT declined (183 Cr vs. 212 Cr).
- Quarterly profit variance (-22.1%) raises concerns about earnings consistency.
- RSI and MACD confirm weak momentum.
- Volume lower than average, reducing short-term momentum.
📉 Company Negative News
- Decline in FII holdings (-0.60%) shows reduced foreign investor confidence.
- Quarterly profit decline highlights short-term weakness.
📈 Company Positive News
- DII holdings increased (+0.88%), showing domestic institutional support.
- Valuation remains reasonable compared to industry peers.
🏭 Industry
- Industry P/E at 23.7 is slightly higher than ARE&M’s 18.6, suggesting fair valuation.
- Sector outlook remains stable, but cyclical demand may impact earnings.
🔎 Conclusion
ARE&M is moderately valued but technically weak, making it a cautious swing trade candidate. Entry near 760–770 ₹ may offer a rebound opportunity, but exits should be considered around 840–850 ₹. Risk management is essential due to declining profits and weak momentum.