CASTROLIND - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.0
| Stock Code | CASTROLIND | Market Cap | 18,374 Cr. | Current Price | 186 ₹ | High / Low | 232 ₹ |
| Stock P/E | 18.8 | Book Value | 19.2 ₹ | Dividend Yield | 4.71 % | ROCE | 60.3 % |
| ROE | 45.9 % | Face Value | 5.00 ₹ | DMA 50 | 183 ₹ | DMA 200 | 192 ₹ |
| Chg in FII Hold | -1.20 % | Chg in DII Hold | -0.38 % | PAT Qtr | 242 Cr. | PAT Prev Qtr | 261 Cr. |
| RSI | 61.7 | MACD | 0.83 | Volume | 23,50,259 | Avg Vol 1Wk | 21,51,327 |
| Low price | 170 ₹ | High price | 232 ₹ | PEG Ratio | 3.28 | Debt to equity | 0.03 |
| 52w Index | 25.2 % | Qtr Profit Var | 3.74 % | EPS | 9.69 ₹ | Industry PE | 13.2 |
Analysis: CASTROLIND shows strong fundamentals with ROCE at 60.3% and ROE at 45.9%, supported by a very low debt-to-equity ratio (0.03). The dividend yield of 4.71% adds income stability. Technicals are moderately bullish: RSI at 61.7, MACD positive, and price trading above 50 DMA (183 ₹) but slightly below 200 DMA (192 ₹). Valuation is on the higher side with a P/E of 18.8 compared to industry PE of 13.2, and PEG ratio of 3.28 suggests limited growth relative to valuation. Quarterly PAT declined slightly from 261 Cr. to 242 Cr., which is a short-term concern.
Optimal Entry Price: Around 182–186 ₹ (near 50 DMA support).
Exit Strategy: If already holding, consider profit booking near 200–205 ₹ resistance, or exit if price falls below 178 ₹.
✅ Positive
- High ROCE (60.3%) and ROE (45.9%).
- Debt-to-equity ratio almost negligible (0.03).
- Strong dividend yield of 4.71%.
- Price supported by 50 DMA.
⚠️ Limitation
- P/E ratio (18.8) higher than industry average.
- PEG ratio of 3.28 indicates overvaluation relative to growth.
- Quarterly PAT declined by 3.74%.
📉 Company Negative News
- FII holdings decreased (-1.20%).
- DII holdings decreased (-0.38%).
📈 Company Positive News
- Strong fundamentals with high efficiency ratios.
- Dividend yield provides consistent investor returns.
- Trading volume above weekly average, showing investor interest.
🏭 Industry
- Industry PE is 13.2, lower than CASTROLIND’s 18.8, indicating premium valuation.
- Lubricants and automotive sector remains stable with steady demand, though growth is moderate.
📝 Conclusion
CASTROLIND is a good swing trade candidate with strong fundamentals, high efficiency, and attractive dividend yield. Entry near 182–186 ₹ offers a favorable setup, with profit booking near 200–205 ₹ advisable. While fundamentals are solid, premium valuation and slight profit decline warrant cautious optimism and disciplined stop-loss management.