CASTROLIND - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | CASTROLIND | Market Cap | 18,516 Cr. | Current Price | 187 ₹ | High / Low | 252 ₹ |
| Stock P/E | 19.2 | Book Value | 19.2 ₹ | Dividend Yield | 4.54 % | ROCE | 60.8 % |
| ROE | 46.3 % | Face Value | 5.00 ₹ | DMA 50 | 188 ₹ | DMA 200 | 198 ₹ |
| Chg in FII Hold | -0.59 % | Chg in DII Hold | -0.37 % | PAT Qtr | 261 Cr. | PAT Prev Qtr | 228 Cr. |
| RSI | 53.3 | MACD | -0.90 | Volume | 67,53,695 | Avg Vol 1Wk | 24,48,451 |
| Low price | 181 ₹ | High price | 252 ₹ | PEG Ratio | 3.17 | Debt to equity | 0.03 |
| 52w Index | 9.31 % | Qtr Profit Var | -3.87 % | EPS | 9.60 ₹ | Industry PE | 14.5 |
📊 CASTROLIND presents a fair opportunity for swing trading. Strong fundamentals such as high ROCE, ROE, and an attractive dividend yield provide stability. However, weak technical indicators (negative MACD, price below 200 DMA, and low 52-week index) limit short-term upside. The stock is trading close to its support zone, which may offer cautious entry opportunities.
💡 Optimal Entry Price: Around 182–185 ₹ (near support zone, slightly above 52-week low).
📈 Exit Strategy if Holding: Consider booking profits near 200–205 ₹ (short-term resistance) or if RSI rises above 65.
✅ Positive
- ROCE at 60.8% and ROE at 46.3% indicate exceptional efficiency and profitability.
- Dividend yield at 4.54% provides strong income appeal.
- Debt-to-equity ratio at 0.03 — virtually debt-free.
- EPS of 9.60 ₹ supports earnings visibility.
- Quarterly PAT of 261 Cr. vs. 228 Cr. in the previous quarter shows growth.
- High trading volume (67.5 lakh) compared to average weekly volume (24.4 lakh), showing strong participation.
⚠️ Limitation
- Current price (187 ₹) is below 200 DMA (198 ₹), showing weak long-term trend.
- MACD negative (-0.90), suggesting weak short-term momentum.
- PEG ratio of 3.17 indicates overvaluation relative to growth.
- Quarterly profit variation at -3.87% shows recent slowdown.
- 52-week index at 9.31% indicates the stock is near its yearly low.
📉 Company Negative News
- Decline in FII holdings (-0.59%) and DII holdings (-0.37%) shows reduced institutional confidence.
- Recent profit slowdown (-3.87%) raises concerns about growth momentum.
📈 Company Positive News
- Strong operational efficiency with exceptional ROCE and ROE.
- Debt-free balance sheet enhances financial stability.
- Attractive dividend yield supports investor interest.
🏦 Industry
- Industry P/E at 14.5 is lower than CASTROLIND’s P/E of 19.2, indicating slight overvaluation compared to peers.
- Lubricants and automotive sector outlook remains steady, supported by industrial and vehicle demand.
🔎 Conclusion
CASTROLIND earns a swing trade rating of 3.8. Entry near 182–185 ₹ offers a cautious opportunity, while exit around 200–205 ₹ is optimal. Strong fundamentals and dividend yield support stability, but weak technicals and reduced institutional interest suggest traders should adopt a conservative approach with strict stop-losses.