CERA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | CERA | Market Cap | 6,846 Cr. | Current Price | 5,300 ₹ | High / Low | 7,275 ₹ |
| Stock P/E | 30.4 | Book Value | 1,063 ₹ | Dividend Yield | 1.23 % | ROCE | 22.4 % |
| ROE | 18.3 % | Face Value | 5.00 ₹ | DMA 50 | 5,081 ₹ | DMA 200 | 5,523 ₹ |
| Chg in FII Hold | -0.41 % | Chg in DII Hold | 0.17 % | PAT Qtr | 35.0 Cr. | PAT Prev Qtr | 56.6 Cr. |
| RSI | 58.2 | MACD | 117 | Volume | 7,789 | Avg Vol 1Wk | 7,494 |
| Low price | 4,461 ₹ | High price | 7,275 ₹ | PEG Ratio | 1.77 | Debt to equity | 0.04 |
| 52w Index | 29.8 % | Qtr Profit Var | -23.7 % | EPS | 165 ₹ | Industry PE | 63.0 |
📊 CERA shows strong swing trade potential. The stock is currently at 5,300 ₹, trading near its DMA 50 (5,081 ₹) and below DMA 200 (5,523 ₹), suggesting a possible rebound opportunity. RSI at 58.2 indicates neutral momentum, while MACD is positive, supporting upward movement. Volume is slightly above average, adding conviction.
💡 Optimal Entry Price: Around 5,050–5,100 ₹ (near DMA 50 support).
📈 Exit Strategy (if already holding): Consider profit booking near 5,600–5,700 ₹ resistance zone, or earlier if RSI approaches 70 with weakening momentum.
✅ Positive
- Strong ROCE (22.4%) and ROE (18.3%) reflect excellent efficiency.
- Low debt-to-equity ratio (0.04) ensures financial stability.
- Dividend yield of 1.23% adds shareholder value.
- PEG ratio (1.77) indicates reasonable growth relative to valuation.
⚠️ Limitation
- Quarterly PAT dropped significantly (35.0 Cr. vs 56.6 Cr.).
- FII holdings decreased (-0.41%), showing reduced foreign investor confidence.
- Current price is well below 52-week high (7,275 ₹), reflecting past weakness.
📉 Company Negative News
- Quarterly profit decline of -23.7% raises concerns about earnings momentum.
- Reduced FII participation may limit near-term upside.
📈 Company Positive News
- Strong fundamentals with high ROCE and ROE.
- Stable financial structure with negligible debt.
- Dividend yield supports investor confidence.
🏭 Industry
- Sanitaryware and building materials sector is cyclical, tied to real estate demand.
- Industry P/E (63.0) is much higher than company’s (30.4), suggesting CERA is undervalued relative to peers.
🔎 Conclusion
CERA offers a solid swing trade opportunity with strong fundamentals and undervaluation compared to industry peers. Entry near 5,050–5,100 ₹ provides favorable risk-reward, with exit around 5,600–5,700 ₹. If already holding, monitor RSI and profit momentum closely to secure gains.