ASHOKLEY - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.8

ASHOKLEY is showing signs of a steady base with healthy earnings momentum and improving sentiment. While not flashing a breakout, its proximity to key moving averages and improving financial metrics suggest a potential swing setup with moderate upside.

🔧 Technical Snapshot

Price Stability: Hovering just above 50 DMA (₹121) and 200 DMA (₹114) — base formation in progress.

MACD (+0.49): Weakly positive, early trend signal.

RSI (50.6): Neutral zone — room to build momentum.

Volume Slightly Soft: Below 1Wk average — not yet conviction-heavy.

📊 Fundamental Highlights

Quarterly PAT Growth (+56.3%): Big earnings jump (₹1,190 Cr vs ₹761 Cr).

ROE (28.8%) & ROCE (14.3%) — Strong return indicators.

EPS ₹5.29 & P/E 23.7 — Reasonable valuation against Industry PE 34.7.

PEG Ratio (0.13): Deeply undervalued relative to growth.

Dividend Yield (2.53%): Higher than sector peers — adds passive appeal.

FII Holding Up (+0.52%): Institutional interest returning.

⚠️ Red Flags

Debt-to-Equity 4.08: Highly leveraged — risk during downturns.

DII Selling (-0.45%): Some caution from domestic institutions.

52W High ₹132: Price hovering ~7% below resistance.

📥 Optimal Entry Price

Buy Zone: ₹119–₹123 Entry triggers

RSI bounces off 49–51 range

MACD uptick with daily volume > 85L

Price closes above ₹125 for 2 consecutive sessions

🚪 Exit Strategy (If Holding)

Initial Exit Zone: ₹128–₹130 (pre-resistance test)

Swing Target: ₹135–₹138 if MACD strengthens and RSI pushes toward 60+

Stretch Exit: ₹142+ on volume surge above 1Cr and RSI >65

Stop Loss: ₹117 to manage downside risk

🧠 Final Take

ASHOKLEY is quietly stacking a foundation with strong profit momentum and valuation support. It’s not explosive—but it’s credible. If debt levels don't spook traders and volume rebounds, it could shape into a reliable 8–12% swing play.

I can chart this against peers like Tata Motors or Eicher for sector swing comparisons. Let’s find who’s revving the hardest in the auto lane 🚗📈.

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