CERA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | CERA | Market Cap | 6,735 Cr. | Current Price | 5,222 ₹ | High / Low | 7,275 ₹ |
| Stock P/E | 30.0 | Book Value | 1,063 ₹ | Dividend Yield | 1.24 % | ROCE | 22.4 % |
| ROE | 18.3 % | Face Value | 5.00 ₹ | DMA 50 | 5,259 ₹ | DMA 200 | 5,925 ₹ |
| Chg in FII Hold | -1.22 % | Chg in DII Hold | 0.46 % | PAT Qtr | 35.0 Cr. | PAT Prev Qtr | 56.6 Cr. |
| RSI | 54.7 | MACD | -47.1 | Volume | 89,688 | Avg Vol 1Wk | 23,858 |
| Low price | 4,794 ₹ | High price | 7,275 ₹ | PEG Ratio | 1.74 | Debt to equity | 0.04 |
| 52w Index | 17.2 % | Qtr Profit Var | -23.7 % | EPS | 165 ₹ | Industry PE | 30.0 |
📊 CERA shows moderate potential for swing trading. Strong fundamentals such as high ROCE, ROE, and a debt-free balance sheet provide stability. However, weak technical indicators (negative MACD, price below 200 DMA, and low 52-week index) along with declining quarterly profits limit short-term upside. The stock is trading close to support levels, which may provide cautious entry opportunities.
💡 Optimal Entry Price: Around 5,150–5,200 ₹ (near support zone, slightly below current price).
📈 Exit Strategy if Holding: Consider booking profits near 5,600–5,700 ₹ (short-term resistance) or if RSI rises above 65.
✅ Positive
- ROCE at 22.4% and ROE at 18.3% indicate strong efficiency and profitability.
- Debt-to-equity ratio at 0.04 — virtually debt-free.
- EPS of 165 ₹ supports strong earnings visibility.
- Dividend yield of 1.24% adds income appeal.
- Stock trading close to 50 DMA (5,259 ₹), showing near-term support.
- DII holdings increased (+0.46%), reflecting domestic investor confidence.
⚠️ Limitation
- Current price (5,222 ₹) is below 200 DMA (5,925 ₹), showing weak long-term trend.
- MACD negative (-47.1), suggesting bearish momentum.
- Quarterly PAT decline (35 Cr. vs. 56.6 Cr.) shows weak earnings momentum.
- PEG ratio of 1.74 indicates growth is already priced in.
- 52-week index at 17.2% shows the stock is near its yearly low.
📉 Company Negative News
- Decline in FII holdings (-1.22%) shows reduced foreign investor confidence.
- Quarterly profit slowdown (-23.7%) raises concerns about earnings momentum.
📈 Company Positive News
- Strong fundamentals with high ROCE and ROE.
- Debt-free balance sheet enhances financial stability.
- DII holdings increased, showing domestic investor support.
🏦 Industry
- Industry P/E at 30.0 matches CERA’s P/E, suggesting fair valuation compared to peers.
- Building materials and sanitaryware sector outlook remains positive, supported by housing and infrastructure demand.
🔎 Conclusion
CERA earns a swing trade rating of 3.5. Entry near 5,150–5,200 ₹ offers a cautious opportunity, while exit around 5,600–5,700 ₹ is optimal. Strong fundamentals support stability, but weak technicals and declining profits suggest traders should adopt a conservative approach with strict stop-losses.