CHOICEIN - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | CHOICEIN | Market Cap | 17,379 Cr. | Current Price | 783 ₹ | High / Low | 860 ₹ |
| Stock P/E | 998 | Book Value | 25.1 ₹ | Dividend Yield | 0.00 % | ROCE | 3.15 % |
| ROE | 2.05 % | Face Value | 10.0 ₹ | DMA 50 | 791 ₹ | DMA 200 | 737 ₹ |
| Chg in FII Hold | -0.81 % | Chg in DII Hold | 0.02 % | PAT Qtr | 0.68 Cr. | PAT Prev Qtr | Cr. |
| RSI | 49.0 | MACD | -10.4 | Volume | 8,66,904 | Avg Vol 1Wk | 7,02,372 |
| Low price | 438 ₹ | High price | 860 ₹ | PEG Ratio | 19.7 | Debt to equity | 0.03 |
| 52w Index | 81.6 % | Qtr Profit Var | -64.2 % | EPS | 0.42 ₹ | Industry PE | 19.9 |
📊 CHOICEIN shows weak potential for swing trading. The stock is trading close to its 50 DMA and above the 200 DMA, reflecting some technical support. However, extremely high valuation (P/E 998 vs. industry 19.9), poor profitability metrics, and sharp quarterly profit decline make it a risky candidate. While volumes are rising, fundamentals remain unattractive for short-term gains.
💡 Optimal Entry Price: Around 760–770 ₹ (near support zone, slightly below current price).
📈 Exit Strategy if Holding: Consider booking profits near 820–830 ₹ (short-term resistance) or if RSI rises above 60.
✅ Positive
- Stock trading above 200 DMA (737 ₹), showing long-term support.
- Debt-to-equity ratio at 0.03 — virtually debt-free.
- Volume (8.66 lakh) higher than average weekly volume (7.02 lakh), indicating strong participation.
- 52-week index at 81.6% shows the stock is closer to its yearly high, reflecting investor interest.
⚠️ Limitation
- Extremely high P/E of 998 compared to industry average of 19.9 — stock is severely overvalued.
- ROCE at 3.15% and ROE at 2.05% are very weak.
- Dividend yield at 0.00% offers no income appeal.
- EPS of 0.42 ₹ is very low, limiting earnings visibility.
- PEG ratio of 19.7 indicates growth is overpriced.
📉 Company Negative News
- Quarterly PAT of 0.68 Cr. with a -64.2% variation shows sharp earnings decline.
- Decline in FII holdings (-0.81%) indicates reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased slightly (+0.02%), showing minimal domestic support.
- Stock trading above 200 DMA, reflecting some technical strength.
🏦 Industry
- Industry P/E at 19.9 is far lower than CHOICEIN’s 998, highlighting severe overvaluation.
- Financial services sector outlook remains steady, but valuations are critical for sustainability.
🔎 Conclusion
CHOICEIN earns a swing trade rating of 2.8. Entry near 760–770 ₹ offers a cautious opportunity, while exit around 820–830 ₹ is optimal. Despite technical support and rising volumes, extreme overvaluation, weak profitability, and declining earnings make this a high-risk swing trade candidate. Traders should exercise caution and use strict stop-losses.