ATUL - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.7

📊 ATUL Ltd shows fair potential for swing trading. Entry near ₹5,750 is ideal. If already held, consider exiting around ₹6,500–₹6,700.

📈 Positive

• 🧾 Zero debt (Debt-to-Equity: 0.00) ensures financial resilience.
• 📊 Quarterly PAT jumped from ₹97.7 Cr. to ₹172 Cr., a 76% increase.
• 💰 EPS of ₹166 and ROCE of 11.9% reflect solid profitability.
• 📉 Trading below DMA 50 and DMA 200 suggests potential for rebound.
• 🎁 Dividend yield of 0.42% adds passive income.

⚠️ Limitation

• 📉 RSI at 44.1 and MACD at -87.6 indicate weak momentum.
• 📉 Volume below average (13,875 vs 18,011), showing low trading interest.
• 💸 High P/E of 35.5 vs industry average of 32.5 suggests overvaluation.
• 📉 Negative PEG ratio (-4.38) implies poor growth relative to valuation.
• 📉 Decline in FII (-0.46%) and DII (-0.02%) holdings may signal reduced institutional confidence.

📉 Company Negative News

• 📉 No major negative news reported recently, but technical indicators remain bearish.

📈 Company Positive News

• 📈 Strong quarterly earnings beat expectations, boosting investor sentiment.
• 📈 Analysts maintain a cautious ‘Buy’ stance due to earnings momentum and debt-free status.

🏭 Industry

• 🏭 Specialty chemicals sector is stable with moderate growth outlook.
• 📊 Industry P/E of 32.5 indicates fair valuation across peers.

✅ Conclusion

• 📊 ATUL Ltd is a moderate swing trade candidate with strong fundamentals but weak technicals.
• 📉 Optimal entry price: ₹5,750–₹5,800 (near support and below DMA 50).
• 📈 Exit target: ₹6,500–₹6,700 (near DMA 200 and resistance zone).
• 📌 Monitor RSI and volume for confirmation before entry.

Would you like a visual chart of ATUL’s RSI and MACD trends to support this analysis?