ARE&M - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | ARE&M | Market Cap | 16,177 Cr. | Current Price | 885 ₹ | High / Low | 1,109 ₹ |
| Stock P/E | 20.0 | Book Value | 425 ₹ | Dividend Yield | 1.19 % | ROCE | 16.8 % |
| ROE | 12.3 % | Face Value | 1.00 ₹ | DMA 50 | 896 ₹ | DMA 200 | 974 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 0.88 % | PAT Qtr | 212 Cr. | PAT Prev Qtr | 194 Cr. |
| RSI | 54.7 | MACD | -19.3 | Volume | 7,70,218 | Avg Vol 1Wk | 4,62,823 |
| Low price | 805 ₹ | High price | 1,109 ₹ | PEG Ratio | 1.01 | Debt to equity | 0.04 |
| 52w Index | 26.4 % | Qtr Profit Var | -12.1 % | EPS | 53.3 ₹ | Industry PE | 28.7 |
📊 ARE&M shows moderate potential for swing trading. The current price (885 ₹) is slightly below the 50 DMA (896 ₹) and well below the 200 DMA (974 ₹), reflecting short-term weakness. RSI at 54.7 indicates neutrality, while MACD (-19.3) suggests bearish momentum. Fundamentals are decent with ROCE (16.8%) and ROE (12.3%), supported by low debt-to-equity (0.04). However, quarterly profit variation (-12.1%) raises caution for near-term performance.
✅ Optimal Entry Price: Around 860–880 ₹ (near support zone close to 805 ₹).
📈 Exit Strategy: If already holding, consider exiting near 950–980 ₹ (resistance around 200 DMA) or set a stop-loss below 840 ₹.
Positive
- Reasonable P/E ratio (20.0) compared to industry average (28.7), suggesting fair valuation.
- Strong EPS of 53.3 ₹ supports profitability.
- Low debt-to-equity ratio (0.04) ensures financial stability.
- DII holdings increased (+0.88%), showing domestic institutional confidence.
- Dividend yield of 1.19% provides investor returns.
Limitation
- Price trading below DMA levels signals weak short-term momentum.
- MACD (-19.3) indicates bearish sentiment.
- Quarterly profit declined (-12.1%), raising concerns about earnings stability.
- FII holdings decreased (-0.60%), showing reduced foreign investor interest.
Company Negative News
- No major external negative news reported, but profit decline is a concern.
Company Positive News
- PAT improved sequentially (212 Cr vs 194 Cr), showing operational resilience despite YoY decline.
- Strong fundamentals with low debt and consistent dividend payout.
Industry
- Industry P/E at 28.7 is higher than company’s P/E (20.0), suggesting ARE&M is relatively undervalued.
- Renewable energy and engineering sector benefits from long-term demand growth.
Conclusion
⚖️ ARE&M is a moderately attractive swing trade candidate with fair valuation and strong fundamentals, but faces short-term weakness due to declining profits and bearish technical indicators. Entry near 860–880 ₹ offers a safer risk-reward setup. Exit near 950–980 ₹ is advisable if already holding. Traders should remain cautious and use strict stop-loss discipline.