CERA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | CERA | Market Cap | 6,138 Cr. | Current Price | 4,758 ₹ | High / Low | 7,275 ₹ |
| Stock P/E | 27.3 | Book Value | 1,063 ₹ | Dividend Yield | 1.37 % | ROCE | 22.4 % |
| ROE | 18.3 % | Face Value | 5.00 ₹ | DMA 50 | 4,978 ₹ | DMA 200 | 5,661 ₹ |
| Chg in FII Hold | -1.22 % | Chg in DII Hold | 0.46 % | PAT Qtr | 35.0 Cr. | PAT Prev Qtr | 56.6 Cr. |
| RSI | 46.5 | MACD | -97.0 | Volume | 24,328 | Avg Vol 1Wk | 33,755 |
| Low price | 4,461 ₹ | High price | 7,275 ₹ | PEG Ratio | 1.59 | Debt to equity | 0.04 |
| 52w Index | 10.6 % | Qtr Profit Var | -23.7 % | EPS | 165 ₹ | Industry PE | 56.7 |
📊 CERA shows moderate potential for swing trading. The RSI at 46.5 indicates neutral momentum, while MACD (-97.0) reflects short-term weakness. Valuation is expensive with a P/E of 27.3 compared to industry PE of 56.7, though EPS of ₹165 provides earnings strength. ROCE (22.4%) and ROE (18.3%) highlight solid efficiency, and debt-to-equity ratio of 0.04 shows financial stability. However, quarterly PAT declined sharply (₹56.6 Cr. to ₹35.0 Cr.), and FII holdings decreased (-1.22%), reflecting cautious sentiment.
💡 Optimal Entry Price: Around ₹4,600–4,650, near support levels and below the 50 DMA (₹4,978).
📈 Exit Strategy (if already holding): Consider booking profits near ₹4,950–5,000, aligning with the 50 DMA resistance zone.
✅ Positive
- Strong ROCE (22.4%) and ROE (18.3%) indicate efficient capital use.
- EPS of ₹165 supports earnings strength.
- Debt-to-equity ratio of 0.04 shows minimal leverage risk.
- DII holdings increased (+0.46%), showing domestic institutional support.
⚠️ Limitation
- P/E of 27.3 is relatively high compared to earnings growth.
- Quarterly PAT declined significantly (-23.7%).
- FII holdings decreased (-1.22%), showing reduced foreign investor confidence.
- Trading volume below weekly average, indicating weaker momentum.
📉 Company Negative News
- No major negative news reported, but earnings decline and FII outflows remain concerns.
📈 Company Positive News
- Strong efficiency metrics with high ROCE and ROE.
- Debt-free balance sheet enhances financial stability.
- DII inflows reflect domestic confidence.
🏭 Industry
- Industry PE is 56.7, much higher than CERA’s 27.3, suggesting relative undervaluation but with growth concerns.
- Building materials and ceramics sector benefits from housing and infrastructure demand but faces cyclical pressures.
🔎 Conclusion
CERA is a fair candidate for swing trading with entry near ₹4,600–4,650 and exit around ₹4,950–5,000. Strong fundamentals and debt-free status are positives, but earnings decline and weak momentum limit upside. Suitable for traders seeking rebound opportunities with cautious risk management.