CHOLAFIN - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | CHOLAFIN | Market Cap | 1,23,896 Cr. | Current Price | 1,455 ₹ | High / Low | 1,832 ₹ |
| Stock P/E | 25.6 | Book Value | 307 ₹ | Dividend Yield | 0.14 % | ROCE | 10.3 % |
| ROE | 19.7 % | Face Value | 2.00 ₹ | DMA 50 | 1,647 ₹ | DMA 200 | 1,616 ₹ |
| Chg in FII Hold | -0.29 % | Chg in DII Hold | 0.27 % | PAT Qtr | 1,288 Cr. | PAT Prev Qtr | 1,155 Cr. |
| RSI | 27.5 | MACD | -54.0 | Volume | 18,92,307 | Avg Vol 1Wk | 21,69,659 |
| Low price | 1,359 ₹ | High price | 1,832 ₹ | PEG Ratio | 1.00 | Debt to equity | 7.24 |
| 52w Index | 20.4 % | Qtr Profit Var | 18.5 % | EPS | 57.6 ₹ | Industry PE | 16.4 |
📊 CHOLAFIN shows decent potential for swing trading. The RSI at 27.5 indicates oversold conditions, suggesting possible rebound, while MACD (-54.0) reflects short-term weakness. Valuation is moderately high with a P/E of 25.6 compared to industry PE of 16.4, but PEG ratio of 1.00 suggests fair growth-adjusted value. Strong EPS (₹57.6) and quarterly PAT growth (₹1,288 Cr. vs ₹1,155 Cr.) are positives. ROE (19.7%) is healthy, though ROCE (10.3%) is modest. Debt-to-equity ratio of 7.24 highlights high leverage, which adds risk. Institutional activity is mixed, with FII holdings down (-0.29%) and DII holdings up (+0.27%).
💡 Optimal Entry Price: Around ₹1,400–1,420, near support levels and below the 50 DMA (₹1,647).
📈 Exit Strategy (if already holding): Consider booking profits near ₹1,630–1,650, aligning with the 50 DMA resistance zone.
✅ Positive
- EPS of ₹57.6 supports strong earnings.
- Quarterly PAT growth of 18.5% shows momentum.
- ROE of 19.7% indicates solid shareholder returns.
- DII holdings increased (+0.27%), showing domestic support.
⚠️ Limitation
- P/E of 25.6 is higher than industry average (16.4).
- ROCE (10.3%) is modest compared to peers.
- Debt-to-equity ratio of 7.24 highlights high leverage risk.
- FII holdings declined (-0.29%), showing reduced foreign investor confidence.
📉 Company Negative News
- No major negative news reported, but high leverage and declining FII interest remain concerns.
📈 Company Positive News
- Strong quarterly profit growth and healthy EPS.
- DII inflows reflect domestic institutional confidence.
🏭 Industry
- Industry PE is 16.4, lower than CHOLAFIN’s 25.6, suggesting relative overvaluation.
- NBFC sector benefits from rising credit demand but faces risks from leverage and interest rate cycles.
🔎 Conclusion
CHOLAFIN is a fair candidate for swing trading with entry near ₹1,400–1,420 and exit around ₹1,630–1,650. Strong earnings growth and ROE are positives, but high leverage and overvaluation limit upside. Suitable for traders seeking rebound opportunities with moderate risk appetite.