⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

CHALET - Swing Trade Analysis with AI Signals

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Rating: 3.4

Last Updated Time : 05 May 26, 03:11 pm

Swing Trade Rating: 3.4

Stock Code CHALET Market Cap 16,512 Cr. Current Price 754 ₹ High / Low 1,082 ₹
Stock P/E 26.1 Book Value 158 ₹ Dividend Yield 0.13 % ROCE 11.9 %
ROE 6.88 % Face Value 10.0 ₹ DMA 50 783 ₹ DMA 200 845 ₹
Chg in FII Hold -0.37 % Chg in DII Hold 0.58 % PAT Qtr 127 Cr. PAT Prev Qtr 168 Cr.
RSI 44.4 MACD 2.32 Volume 1,00,391 Avg Vol 1Wk 85,408
Low price 690 ₹ High price 1,082 ₹ PEG Ratio 0.42 Debt to equity 0.64
52w Index 16.4 % Qtr Profit Var 24.9 % EPS 28.9 ₹ Industry PE 29.7

📊 CHALET shows moderate swing trade potential. The stock is currently at 754 ₹, trading below both DMA 50 (783 ₹) and DMA 200 (845 ₹), indicating short-term weakness. RSI at 44.4 suggests the stock is not overbought, leaving room for upside. MACD is positive but weak, while volume is slightly above average, showing some trading interest.

💡 Optimal Entry Price: Around 740–750 ₹ (near current support zone).

📈 Exit Strategy (if already holding): Consider profit booking near 800–820 ₹ resistance zone, or earlier if RSI approaches 60 with declining momentum.

✅ Positive

  • Reasonable P/E (26.1) compared to industry average (29.7).
  • PEG ratio (0.42) indicates strong growth potential relative to valuation.
  • DII holdings increased (0.58%), showing domestic institutional support.

⚠️ Limitation

  • ROCE (11.9%) and ROE (6.88%) are relatively weak compared to peers.
  • Debt-to-equity ratio (0.64) is higher than ideal, adding financial risk.
  • Stock is far below its 52-week high (1,082 ₹), reflecting past weakness.

📉 Company Negative News

  • Quarterly PAT declined (127 Cr. vs 168 Cr.), showing slowing profitability.
  • FII holdings decreased (-0.37%), indicating reduced foreign investor confidence.

📈 Company Positive News

  • EPS of 28.9 ₹ supports valuation stability.
  • Domestic institutional investors increased holdings, showing local confidence.

🏭 Industry

  • Hospitality sector is cyclical, tied to tourism and corporate travel demand.
  • Industry P/E (29.7) is slightly higher than company’s, suggesting CHALET is fairly valued.

🔎 Conclusion

CHALET offers moderate swing trade potential. Entry near 740–750 ₹ provides a safer risk-reward setup, with exit around 800–820 ₹. If already holding, monitor RSI and profit momentum closely, as weak fundamentals and declining profits may limit upside.

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