CASTROLIND - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | CASTROLIND | Market Cap | 18,448 Cr. | Current Price | 187 ₹ | High / Low | 232 ₹ |
| Stock P/E | 19.2 | Book Value | 19.2 ₹ | Dividend Yield | 4.69 % | ROCE | 60.3 % |
| ROE | 45.9 % | Face Value | 5.00 ₹ | DMA 50 | 187 ₹ | DMA 200 | 195 ₹ |
| Chg in FII Hold | -0.59 % | Chg in DII Hold | -0.37 % | PAT Qtr | 261 Cr. | PAT Prev Qtr | 228 Cr. |
| RSI | 51.4 | MACD | -0.03 | Volume | 30,08,954 | Avg Vol 1Wk | 23,63,513 |
| Low price | 181 ₹ | High price | 232 ₹ | PEG Ratio | 3.35 | Debt to equity | 0.03 |
| 52w Index | 11.9 % | Qtr Profit Var | -3.87 % | EPS | 9.60 ₹ | Industry PE | 12.2 |
📊 CASTROLIND shows decent potential for swing trading. The RSI at 51.4 indicates neutral momentum, while MACD (-0.03) suggests consolidation. Strong ROCE (60.3%) and ROE (45.9%) highlight excellent efficiency, and a high dividend yield of 4.69% adds investor appeal. Valuation is slightly expensive with a P/E of 19.2 compared to industry PE of 12.2, and PEG ratio of 3.35 suggests limited growth-adjusted value. Institutional holdings have declined, reflecting cautious sentiment.
💡 Optimal Entry Price: Around ₹182–185, near support levels and below the 50 DMA (₹187).
📈 Exit Strategy (if already holding): Consider booking profits near ₹195–200, aligning with the 200 DMA resistance zone.
✅ Positive
- Strong ROCE (60.3%) and ROE (45.9%) indicate excellent capital efficiency.
- Dividend yield of 4.69% provides strong income support.
- Quarterly PAT improved from ₹228 Cr. to ₹261 Cr.
- Debt-to-equity ratio of 0.03 shows minimal leverage risk.
- Trading volume above weekly average, showing active interest.
⚠️ Limitation
- P/E of 19.2 is higher than industry average (12.2).
- PEG ratio of 3.35 suggests limited growth-adjusted value.
- Institutional holdings declined (FII -0.59%, DII -0.37%).
- Quarterly profit variation at -3.87% shows inconsistency.
📉 Company Negative News
- No major negative news reported, but institutional selling indicates cautious outlook.
📈 Company Positive News
- Strong dividend yield and high efficiency ratios.
- Quarterly PAT growth supports earnings strength.
- Debt-free balance sheet enhances financial stability.
🏭 Industry
- Industry PE is 12.2, lower than CASTROLIND’s 19.2, suggesting relative overvaluation.
- Lubricants and automotive sector remains cyclical, tied to industrial and vehicle demand.
🔎 Conclusion
CASTROLIND is a good candidate for swing trading with entry near ₹182–185 and exit around ₹195–200. Strong fundamentals, high dividend yield, and efficiency are positives, but overvaluation and declining institutional interest limit upside. Suitable for traders seeking short-term gains with moderate risk appetite.