CHOLAFIN - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | CHOLAFIN | Market Cap | 1,46,649 Cr. | Current Price | 1,739 ₹ | High / Low | 1,832 ₹ |
| Stock P/E | 30.3 | Book Value | 307 ₹ | Dividend Yield | 0.11 % | ROCE | 10.3 % |
| ROE | 19.7 % | Face Value | 2.00 ₹ | DMA 50 | 1,681 ₹ | DMA 200 | 1,603 ₹ |
| Chg in FII Hold | -0.29 % | Chg in DII Hold | 0.27 % | PAT Qtr | 1,288 Cr. | PAT Prev Qtr | 1,155 Cr. |
| RSI | 58.8 | MACD | -12.6 | Volume | 23,92,441 | Avg Vol 1Wk | 21,75,071 |
| Low price | 1,301 ₹ | High price | 1,832 ₹ | PEG Ratio | 1.18 | Debt to equity | 7.24 |
| 52w Index | 82.6 % | Qtr Profit Var | 18.5 % | EPS | 57.6 ₹ | Industry PE | 18.9 |
📊 CHOLAFIN shows strong potential for swing trading. The stock is trading above both 50 DMA and 200 DMA, reflecting bullish momentum. Solid quarterly profit growth, strong ROE, and high trading volumes support fundamentals. However, high debt-to-equity and negative MACD suggest caution in the short term. The stock is near its 52-week high, offering opportunities for momentum-based trades.
💡 Optimal Entry Price: Around 1,700–1,710 ₹ (near 50 DMA support).
📈 Exit Strategy if Holding: Consider booking profits near 1,820–1,830 ₹ (short-term resistance) or if RSI rises above 65.
✅ Positive
- Quarterly PAT growth: 1,288 Cr. vs. 1,155 Cr. (18.5% variation).
- EPS of 57.6 ₹ supports strong earnings visibility.
- ROE at 19.7% indicates solid profitability.
- Stock trading above both 50 DMA (1,681 ₹) and 200 DMA (1,603 ₹), showing bullish technicals.
- Volume (23.9 lakh) higher than average weekly volume (21.7 lakh), indicating strong participation.
- DII holdings increased (+0.27%), reflecting domestic investor confidence.
⚠️ Limitation
- MACD negative (-12.6), suggesting weak short-term momentum.
- Debt-to-equity ratio at 7.24 is very high, raising leverage concerns.
- P/E of 30.3 is higher than industry average (18.9), indicating relative overvaluation.
- Dividend yield at 0.11% offers negligible income appeal.
- ROCE at 10.3% is modest compared to peers.
📉 Company Negative News
- Decline in FII holdings (-0.29%) shows reduced foreign investor confidence.
- High leverage remains a structural concern.
📈 Company Positive News
- Strong quarterly profit growth supports earnings momentum.
- DII holdings increased, showing domestic investor support.
- Stock trading above key moving averages, reflecting bullish technical strength.
🏦 Industry
- Industry P/E at 18.9 is lower than CHOLAFIN’s 30.3, suggesting overvaluation compared to peers.
- NBFC sector outlook remains positive, supported by rising credit demand and economic growth.
🔎 Conclusion
CHOLAFIN earns a swing trade rating of 4.0. Entry near 1,700–1,710 ₹ offers a favorable setup, while exit around 1,820–1,830 ₹ is optimal. Strong fundamentals, profit growth, and technical positioning support short-term gains, though traders should monitor high leverage and weak MACD with strict stop-losses.