CHOLAFIN - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | CHOLAFIN | Market Cap | 1,39,904 Cr. | Current Price | 1,640 ₹ | High / Low | 1,832 ₹ |
| Stock P/E | 26.8 | Book Value | 357 ₹ | Dividend Yield | 0.12 % | ROCE | 9.70 % |
| ROE | 19.3 % | Face Value | 2.00 ₹ | DMA 50 | 1,565 ₹ | DMA 200 | 1,590 ₹ |
| Chg in FII Hold | -1.69 % | Chg in DII Hold | 2.37 % | PAT Qtr | 1,641 Cr. | PAT Prev Qtr | 1,288 Cr. |
| RSI | 61.2 | MACD | 14.8 | Volume | 59,88,366 | Avg Vol 1Wk | 39,37,888 |
| Low price | 1,299 ₹ | High price | 1,832 ₹ | PEG Ratio | 1.07 | Debt to equity | 6.94 |
| 52w Index | 63.9 % | Qtr Profit Var | 29.5 % | EPS | 61.3 ₹ | Industry PE | 19.2 |
📊 CHOLAFIN shows good swing trade potential. The stock is currently at 1,640 ₹, trading above DMA 50 (1,565 ₹) and DMA 200 (1,590 ₹), indicating strong technical support. RSI at 61.2 suggests moderate momentum, while MACD is positive, confirming bullish bias. Volume is significantly higher than weekly average, adding conviction to the move.
💡 Optimal Entry Price: Around 1,600–1,620 ₹ (near DMA 200 support).
📈 Exit Strategy (if already holding): Consider profit booking near 1,700–1,720 ₹ resistance zone, or earlier if RSI crosses 65 with weakening volume.
✅ Positive
- Strong ROE (19.3%) reflects efficient shareholder returns.
- Quarterly PAT increased (1,641 Cr. vs 1,288 Cr.), showing earnings growth.
- DII holdings increased (2.37%), reflecting domestic institutional confidence.
- PEG ratio (1.07) indicates fair valuation relative to growth.
⚠️ Limitation
- High debt-to-equity ratio (6.94) adds financial risk.
- ROCE (9.70%) is relatively weak compared to peers.
- FII holdings decreased (-1.69%), showing reduced foreign investor confidence.
📉 Company Negative News
- Foreign institutional investors reduced stake, signaling cautious outlook.
- High leverage may limit flexibility in volatile markets.
📈 Company Positive News
- EPS of 61.3 ₹ supports valuation strength.
- Quarterly profit growth (+29.5%) highlights strong operational performance.
- DII support adds stability to shareholding pattern.
🏭 Industry
- NBFC sector benefits from credit demand but is sensitive to interest rate cycles.
- Industry P/E (19.2) is lower than company’s (26.8), showing CHOLAFIN trades at a premium valuation.
🔎 Conclusion
CHOLAFIN offers a solid swing trade opportunity with strong earnings growth and institutional support. Entry near 1,600–1,620 ₹ provides favorable risk-reward, with exit around 1,700–1,720 ₹. If already holding, monitor RSI and debt levels closely, as high leverage remains a key limitation.