ARE&M - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.3
| Stock Code | ARE&M | Market Cap | 15,458 Cr. | Current Price | 844 ₹ | High / Low | 1,058 ₹ |
| Stock P/E | 19.9 | Book Value | 446 ₹ | Dividend Yield | 1.25 % | ROCE | 13.5 % |
| ROE | 10.0 % | Face Value | 1.00 ₹ | DMA 50 | 838 ₹ | DMA 200 | 886 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | -0.17 % | PAT Qtr | 187 Cr. | PAT Prev Qtr | 183 Cr. |
| RSI | 50.8 | MACD | -0.65 | Volume | 3,64,716 | Avg Vol 1Wk | 4,39,684 |
| Low price | 670 ₹ | High price | 1,058 ₹ | PEG Ratio | 44.2 | Debt to equity | 0.05 |
| 52w Index | 44.9 % | Qtr Profit Var | 12.4 % | EPS | 53.0 ₹ | Industry PE | 28.0 |
ARE&M shows moderate fundamentals with a fair valuation (P/E 19.9 vs industry average 28.0). ROCE (13.5%) and ROE (10.0%) are modest, while debt-to-equity is very low (0.05), reducing financial risk. EPS is healthy at 53 ₹, and dividend yield of 1.25% adds investor value. Quarterly profit improved slightly (187 Cr. vs 183 Cr.), but momentum indicators are weak: RSI at 50.8 is neutral, and MACD is negative (-0.65). The stock trades near DMA 50 (838 ₹) and DMA 200 (886 ₹), showing consolidation rather than breakout potential.
💡 Optimal Entry Price: Around 820–840 ₹, closer to DMA 50 support.
📈 Exit Strategy: If already holding, consider exiting near 880–900 ₹ or on weakness if RSI falls below 48.
✅ Positive
- 📈 Fair P/E ratio (19.9) compared to industry average (28.0).
- 💰 Low debt to equity ratio (0.05).
- 📊 EPS of 53 ₹ supports earnings strength.
- 💰 Dividend yield of 1.25% provides shareholder returns.
⚠️ Limitation
- 📉 Modest ROCE (13.5%) and ROE (10.0%).
- 📊 Neutral RSI (50.8) and negative MACD (-0.65) show weak momentum.
- 📉 Decline in both FII holding (-0.06%) and DII holding (-0.17%).
- 📊 PEG ratio of 44.2 suggests overvaluation relative to growth.
📰 Company Negative News
- ⚠️ Weak momentum indicators with MACD negative.
- 📉 Profit growth remains modest despite slight improvement.
🌟 Company Positive News
- 🚀 Quarterly profit improved slightly (187 Cr. vs 183 Cr.).
- 📊 EPS remains strong at 53 ₹.
- 💰 Dividend payout continues, enhancing investor confidence.
🏭 Industry
- 📈 Industry P/E at 28.0, higher than company’s 19.9, showing ARE&M trades at a discount.
- 🌍 Industry outlook stable, but company shows only moderate efficiency.
📌 Conclusion
ARE&M is a moderately suitable candidate for swing trading, supported by fair valuation and low debt. Entry is safer around 820–840 ₹ near DMA 50. If already holding, exit near 880–900 ₹ to secure gains. Short-term traders should remain cautious as momentum indicators are weak and PEG ratio signals limited growth potential.