CERA - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.9
| Stock Code | CERA | Market Cap | 8,329 Cr. | Current Price | 6,455 ₹ | High / Low | 7,100 ₹ |
| Stock P/E | 39.6 | Book Value | 1,142 ₹ | Dividend Yield | 1.16 % | ROCE | 19.3 % |
| ROE | 14.9 % | Face Value | 5.00 ₹ | DMA 50 | 5,641 ₹ | DMA 200 | 5,600 ₹ |
| Chg in FII Hold | -0.41 % | Chg in DII Hold | 0.17 % | PAT Qtr | 69.4 Cr. | PAT Prev Qtr | 35.0 Cr. |
| RSI | 73.0 | MACD | 196 | Volume | 56,222 | Avg Vol 1Wk | 25,150 |
| Low price | 4,461 ₹ | High price | 7,100 ₹ | PEG Ratio | -102 | Debt to equity | 0.03 |
| 52w Index | 75.6 % | Qtr Profit Var | -20.0 % | EPS | 158 ₹ | Industry PE | 799 |
CERA shows moderate potential for swing trading. The current price of ₹6,455 is above its 50 DMA (₹5,641) and 200 DMA (₹5,600), indicating strong momentum. RSI at 73.0 suggests overbought conditions, while MACD at 196 confirms bullish sentiment. The company is nearly debt-free (Debt-to-equity 0.03) and reported strong EPS of ₹158. However, the P/E of 39.6 compared to industry P/E of 799 is relatively high, and the PEG ratio of -102 highlights weak growth prospects. Quarterly PAT fell by 20%, which raises caution despite long-term strength.
✅ Optimal Entry Price: ₹6,100–₹6,200 (closer to DMA support)
📈 Exit Strategy (if already holding): Consider booking profits near ₹6,900–₹7,100 unless momentum breaks out strongly above resistance.
🌟 Positive
- 📈 EPS of ₹158 reflects strong earnings power.
- 💹 Debt-to-equity ratio of 0.03 shows negligible leverage.
- 📊 ROCE of 19.3% and ROE of 14.9% indicate efficient capital use.
- 📈 PAT growth compared to previous quarter (₹35 Cr. → ₹69.4 Cr.).
⚠️ Limitation
- 📉 PEG ratio of -102 suggests poor growth relative to valuation.
- 📊 Dividend yield of 1.16% is modest.
- 📉 RSI at 73.0 signals overbought conditions.
- 📉 Quarterly PAT declined by 20% compared to prior year.
📰 Company Negative News
- 📉 Decline in FII holding (-0.41%) shows reduced foreign investor confidence.
📰 Company Positive News
- 📈 Increase in DII holding (+0.17%) highlights domestic institutional support.
- 💹 Strong PAT improvement compared to immediate previous quarter.
🏭 Industry
- 📊 Industry P/E at 799 is much higher than CERA’s 39.6, suggesting relative undervaluation but sector-wide inflated multiples.
- 🏭 Building materials and sanitaryware sector benefits from housing demand and infrastructure growth.
✅ Conclusion
CERA is a fair swing trade candidate with strong fundamentals, debt-free status, and technical support near DMA levels. Entry around ₹6,100–₹6,200 is safer, while profit booking near ₹6,900–₹7,100 is advisable if already holding. Caution is warranted due to overbought RSI levels, weak PEG ratio, and recent profit decline.
Would you like me to also compare CERA’s swing trade outlook with peers like Kajaria Ceramics or Somany Ceramics to highlight relative opportunities in the sanitaryware and ceramics sector?