CASTROLIND - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.9
| Stock Code | CASTROLIND | Market Cap | 18,365 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 | 184 ₹ | DMA 200 | 189 ₹ |
| Chg in FII Hold | -1.20 % | Chg in DII Hold | -0.38 % | PAT Qtr | 242 Cr. | PAT Prev Qtr | 261 Cr. |
| RSI | 60.7 | MACD | 0.51 | Volume | 12,48,875 | Avg Vol 1Wk | 18,90,924 |
| Low price | 170 ₹ | High price | 232 ₹ | PEG Ratio | 3.28 | Debt to equity | 0.03 |
| 52w Index | 25.0 % | Qtr Profit Var | 3.74 % | EPS | 9.69 ₹ | Industry PE | 13.9 |
CASTROLIND shows moderate potential for swing trading. The current price of ₹186 is near its 50 DMA (₹184) and 200 DMA (₹189), indicating consolidation. RSI at 60.7 suggests healthy momentum without being overbought, while MACD at 0.51 shows weak bullish signals. The dividend yield of 4.71% is attractive, and ROCE at 60.3% with ROE at 45.9% highlight strong profitability. However, the PEG ratio of 3.28 and relatively high P/E of 18.8 compared to industry P/E of 13.9 suggest overvaluation. Institutional selling (FII -1.20%, DII -0.38%) adds caution.
✅ Optimal Entry Price: ₹178–₹182 (closer to support levels)
📈 Exit Strategy (if already holding): Consider booking profits near ₹200–₹210 unless momentum strengthens beyond resistance.
🌟 Positive
- 📈 Strong ROCE (60.3%) and ROE (45.9%) indicate excellent efficiency.
- 💰 Attractive dividend yield of 4.71% provides steady income.
- 📊 EPS of ₹9.69 shows consistent earnings.
- 📉 Debt-to-equity ratio of 0.03 reflects negligible leverage risk.
⚠️ Limitation
- 📉 P/E of 18.8 is higher than industry average of 13.9.
- 📊 PEG ratio of 3.28 suggests overvaluation relative to growth.
- 📉 Quarterly PAT declined slightly (₹261 Cr. → ₹242 Cr.).
- 📈 52w Index at 25% indicates limited upside from current levels.
📰 Company Negative News
- 📉 Decline in FII holding (-1.20%) and DII holding (-0.38%) shows reduced institutional confidence.
📰 Company Positive News
- 📈 Dividend yield remains strong, supporting investor interest.
- 💹 High ROCE and ROE reflect strong operational efficiency.
🏭 Industry
- 📊 Industry P/E at 13.9 is lower than CASTROLIND’s 18.8, suggesting slight overvaluation.
- 🏭 Lubricants and automotive sector faces cyclical demand but benefits from long-term consumption trends.
✅ Conclusion
CASTROLIND is a fair swing trade candidate with strong profitability and dividend support. Entry around ₹178–₹182 is safer, while profit booking near ₹200–₹210 is advisable if already holding. Caution is warranted due to overvaluation and institutional selling pressure.
Would you like me to also compare CASTROLIND’s swing trade outlook with another auto ancillary stock like Bosch or Motherson Sumi to highlight relative opportunities?