ATUL - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 3.8

📊 ATUL shows moderate potential for swing trading. The stock is trading close to its 50 DMA (5,945 ₹), which acts as immediate support. However, momentum indicators (RSI 46.1, MACD negative) suggest limited strength. The optimal entry price would be around 5,900–5,950 ₹ if the stock sustains above this level. If already holding, consider exiting near 6,350–6,400 ₹ (close to 200 DMA resistance) or on weakness below 5,800 ₹.

✅ Positive

• 📈 Strong quarterly profit growth (PAT up from 97.7 Cr. to 172 Cr., +33.8%).
• 💰 Debt-free balance sheet (Debt to equity: 0.00).
• 📊 EPS of 166 ₹ provides earnings stability.
• 📉 Current price near 50 DMA support zone.

⚠️ Limitation

• 📉 High valuation (P/E 36.3 vs Industry PE 26.6).
• 📉 Weak ROE (8.64%) and ROCE (11.9%).
• 📉 Decline in FII (-0.46%) and DII (-0.02%) holdings.
• 📉 Low dividend yield (0.43%).

🚨 Company Negative News

• 📉 No major negative news reported, but institutional selling pressure is visible.

🌟 Company Positive News

• 📈 Strong quarterly profit growth and margin improvement.
• 💼 Stable financials with zero debt.

🏭 Industry

• 📊 Industry PE at 26.6, lower than ATUL’s P/E, suggesting overvaluation.
• 🌱 Specialty chemicals sector has long-term growth potential but faces cyclical demand risks.

📌 Conclusion

ATUL is a moderately good candidate for swing trading with entry near 5,900–5,950 ₹ and exit near 6,350–6,400 ₹. While fundamentals show strength in profitability and debt-free status, valuations remain stretched and momentum indicators are weak. Traders should adopt strict stop-loss discipline below 5,800 ₹.

Would you like me to extend this analysis by comparing ATUL’s swing trade setup with another specialty chemical peer to spot relative opportunities?