CHALET - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.1

📊 Analysis Summary

CHALET shows a promising swing trade setup, supported by strong earnings momentum and improving technical indicators. While valuation is stretched, the stock is showing signs of short-term strength and could offer a profitable swing opportunity.

🔍 Technical Indicators

RSI (48.7): Neutral but rising — approaching bullish territory.

MACD (6.17): Positive — indicates upward momentum.

Price vs DMA

Current Price (₹900) is above 200 DMA (₹854) and slightly above 50 DMA (₹894) — bullish crossover zone.

Volume: Below average — needs confirmation via volume spike.

📈 Fundamental Snapshot

P/E (139) vs Industry PE (37.4): Highly overvalued — caution on valuation.

PEG Ratio (2.47): High — growth priced in.

ROCE (11.1%) & ROE (5.77%): Moderate returns — not exceptional.

EPS (₹6.53) vs Price (₹900): Premium valuation.

Qtr Profit Growth (+50.2%): Strong earnings momentum.

FII & DII Holding: Stable — no major institutional movement.

Debt to Equity (0.85): Slightly high — typical for hospitality sector.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹880–₹900 range, ideally on pullback with MACD holding positive.

Confirm entry with RSI crossing 50 and volume pickup.

🚪 Exit Strategy (If Already Holding)

Exit near ₹940–₹960, or partial booking at ₹980.

If price falls below ₹880, consider stop-loss at ₹860 to protect downside.

⚖️ Final Verdict

CHALET is a good swing trade candidate with strong short-term momentum and earnings growth. Valuation is rich, so the trade should be short-term focused with disciplined exits.

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