ARE&M - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.9
| Stock Code | ARE&M | Market Cap | 16,194 Cr. | Current Price | 885 ₹ | High / Low | 1,096 ₹ |
| Stock P/E | 21.4 | Book Value | 425 ₹ | Dividend Yield | 1.19 % | ROCE | 16.8 % |
| ROE | 12.3 % | Face Value | 1.00 ₹ | DMA 50 | 816 ₹ | DMA 200 | 901 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | -0.17 % | PAT Qtr | 183 Cr. | PAT Prev Qtr | 212 Cr. |
| RSI | 64.2 | MACD | 33.0 | Volume | 9,76,026 | Avg Vol 1Wk | 9,51,062 |
| Low price | 670 ₹ | High price | 1,096 ₹ | PEG Ratio | 1.08 | Debt to equity | 0.04 |
| 52w Index | 50.4 % | Qtr Profit Var | -22.1 % | EPS | 44.5 ₹ | Industry PE | 27.6 |
ARE&M shows decent potential for swing trading. The stock is currently priced at ₹885, above its 50 DMA (₹816) but slightly below its 200 DMA (₹901), suggesting short-term strength but medium-term resistance. RSI at 64.2 indicates the stock is nearing overbought levels, while MACD remains positive, supporting momentum. Volumes are stable compared to the weekly average, showing consistent participation. Fundamentals are solid, though recent profit decline is a concern.
✅ Optimal Entry Price: Around ₹850–₹870 (near support and 50 DMA)
📤 Exit Strategy: If already holding, consider booking profits near ₹950–₹980, or exit if price falls below ₹820 support.
👍 Positive
- Strong ROCE (16.8%) and ROE (12.3%)
- Low debt-to-equity ratio (0.04)
- EPS of ₹44.5 indicates profitability
- Dividend yield of 1.19% adds investor confidence
⚠️ Limitation
- Quarterly profit variation shows decline (-22.1%)
- Stock trading below 200 DMA, medium-term resistance
- FII and DII holdings decreased (-0.06% and -0.17%)
📉 Company Negative News
- PAT dropped from ₹212 Cr to ₹183 Cr
- Institutional investors reducing exposure
📈 Company Positive News
- Debt-free balance sheet with strong fundamentals
- Stock has rebounded ~50% from 52-week low (₹670)
- PEG ratio of 1.08 suggests reasonable valuation relative to growth
🏭 Industry
- Industry P/E is 27.6, higher than company’s P/E of 21.4, indicating undervaluation
- Sector outlook remains positive with demand growth
✅ Conclusion
ARE&M is a fundamentally strong company with low debt and decent profitability. Despite recent profit decline and institutional selling, the valuation remains attractive compared to industry peers. It is a good candidate for swing trading with entry near ₹850–₹870 and profit booking around ₹950–₹980. Traders should monitor RSI levels to avoid entering at overbought conditions.