CHAMBLFERT - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 4.2

📊 CHAMBLFERT presents a strong case for swing trading. The stock is trading slightly below its 50 DMA (463 ₹) and 200 DMA (512 ₹), showing short-term weakness. RSI at 44.7 suggests neutral momentum, while MACD (-8.08) indicates mild bearish sentiment. Fundamentally, the company is solid with zero debt, strong ROCE (27.6%), and ROE (20.3%). Valuation is attractive with a low P/E (9.67) compared to industry PE (20.3). Overall, it offers a favorable risk-reward setup.

💡 Optimal Entry Price: Around 430–440 ₹ (close to support zone near 410 ₹).

🚪 Exit Strategy: If already holding, consider exiting near 470–480 ₹ (resistance at 50 DMA) or trail stop-loss below 425 ₹ to manage risk.

✅ Positive

• 📈 Low P/E (9.67) compared to industry average, suggesting undervaluation.
• 💰 Zero debt ensures financial stability and reduces risk.
• 📊 Strong ROCE (27.6%) and ROE (20.3%) highlight efficient capital use.
• 📈 Dividend yield of 2.25% provides steady income support.

⚠️ Limitation

• 📉 Trading below 50 DMA and 200 DMA indicates weak technical momentum.
• 📊 Volume decline compared to weekly average suggests reduced trading interest.
• 📉 PEG ratio of 1.28 indicates moderate valuation relative to growth.

🚨 Company Negative News

• 📉 DII holding reduced (-2.56%), reflecting lower domestic institutional confidence.
• 📉 PAT declined from 638 Cr. to 602 Cr. in the latest quarter.

🌟 Company Positive News

• 📈 FII holding increased (+1.23%), showing foreign investor confidence.
• 💡 Quarterly profit variation (+20.2%) highlights earnings resilience.
• 📊 EPS at 46.0 ₹ supports strong earnings visibility.

🏭 Industry

• 📊 Industry PE at 20.3, higher than CHAMBLFERT’s PE, suggesting sector trades at premium valuations.
• 📈 Sector demand supported by agriculture and fertilizer consumption trends.

📌 Conclusion

CHAMBLFERT is a strong swing trade candidate with attractive valuation, zero debt, and solid fundamentals. Entry near 430–440 ₹ offers a favorable risk-reward setup, while exits should be targeted around 470–480 ₹. Caution is advised due to reduced DII interest and short-term technical weakness, but overall fundamentals and foreign investor support make it appealing for short-term trades.

I can also prepare a comparison of CHAMBLFERT with another fertilizer sector stock to highlight relative swing trade opportunities.