CARBORUNIV - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.6

📊 Based on the given parameters, CARBORUNIV shows moderate potential for swing trading. The stock is currently trading below its 50 DMA (884 ₹) and 200 DMA (975 ₹), with RSI at 43.6 indicating it is not yet oversold but leaning towards weakness. MACD is negative, suggesting bearish momentum. However, strong fundamentals like zero debt and decent ROCE provide support.

💡 Optimal Entry Price: Around 820–830 ₹ (close to support near 809 ₹).

🚪 Exit Strategy: If already holding, consider exiting near 880–900 ₹ (short-term resistance at 50 DMA) or trail stop-loss below 800 ₹ if weakness persists.

✅ Positive

• 📈 Zero debt strengthens financial stability.
• 💰 Strong ROCE (17.6%) and ROE (13.3%) indicate efficient capital use.
• 📊 Volume stability with average weekly volume close to current trading volume.

⚠️ Limitation

• 📉 High P/E (46.3) compared to book value, making valuation expensive.
• 📊 PEG ratio of 5.62 suggests poor growth relative to valuation.
• 📉 Quarterly profit dropped 25.6%, showing earnings pressure.

🚨 Company Negative News

• 📉 Decline in PAT from 145 Cr. to 64.3 Cr. in the latest quarter.
• 📉 FII holding reduced (-0.94%), showing reduced foreign investor confidence.

🌟 Company Positive News

• 📈 DII holding increased (+0.60%), showing domestic institutional support.
• 💡 Strong balance sheet with no debt and consistent dividend yield (0.47%).

🏭 Industry

• 📊 Industry PE at 49.9, slightly higher than CARBORUNIV’s PE, suggesting sector-wide premium valuations.
• 📈 52-week index return of 7.97% indicates moderate industry growth.

📌 Conclusion

CARBORUNIV is a moderately attractive swing trade candidate with strong fundamentals but short-term weakness in earnings and technicals. Entry near 820–830 ₹ offers a favorable risk-reward setup, while exits should be considered near 880–900 ₹. Caution is advised due to declining profits and bearish momentum indicators.

Would you like me to also compare CARBORUNIV’s swing trade potential with another peer in the same industry so you can see relative strength?