CHOLAHLDNG - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.8
| Stock Code | CHOLAHLDNG | Market Cap | 32,202 Cr. | Current Price | 1,714 ₹ | High / Low | 2,299 ₹ |
| Stock P/E | 468 | Book Value | 72.2 ₹ | Dividend Yield | 0.08 % | ROCE | 6.26 % |
| ROE | 4.88 % | Face Value | 1.00 ₹ | DMA 50 | 1,787 ₹ | DMA 200 | 1,819 ₹ |
| Chg in FII Hold | -0.92 % | Chg in DII Hold | 1.03 % | PAT Qtr | 27.2 Cr. | PAT Prev Qtr | 2.11 Cr. |
| RSI | 47.0 | MACD | -43.6 | Volume | 1,35,799 | Avg Vol 1Wk | 2,46,226 |
| Low price | 1,357 ₹ | High price | 2,299 ₹ | PEG Ratio | 92.2 | Debt to equity | 0.00 |
| 52w Index | 37.8 % | Qtr Profit Var | 15.5 % | EPS | 3.66 ₹ | Industry PE | 23.5 |
📊 CHOLAHLDNG shows weak potential for swing trading. The stock is trading below both 50 DMA and 200 DMA, reflecting bearish momentum. Extremely high valuation (P/E 468 vs. industry 23.5), weak ROE/ROCE, and negative MACD limit upside. While quarterly profit has improved compared to the previous quarter, fundamentals remain unattractive for short-term gains.
💡 Optimal Entry Price: Around 1,650–1,670 ₹ (near support zone, slightly below current price).
📈 Exit Strategy if Holding: Consider booking profits near 1,800–1,820 ₹ (short-term resistance) or if RSI rises above 60.
✅ Positive
- Debt-to-equity ratio at 0.00 — completely debt-free.
- Quarterly PAT improved to 27.2 Cr. vs. 2.11 Cr., showing recovery momentum.
- DII holdings increased (+1.03%), reflecting domestic investor confidence.
- EPS of 3.66 ₹ provides some earnings visibility.
⚠️ Limitation
- Extremely high P/E of 468 compared to industry average of 23.5 — stock is severely overvalued.
- ROCE at 6.26% and ROE at 4.88% are weak compared to peers.
- Dividend yield at 0.08% offers negligible income appeal.
- MACD negative (-43.6), suggesting bearish momentum.
- Volume (1.35 lakh) lower than average weekly volume (2.46 lakh), showing reduced participation.
- PEG ratio of 92.2 indicates growth is overpriced.
📉 Company Negative News
- Decline in FII holdings (-0.92%) shows reduced foreign investor confidence.
- Stock trading below both 50 DMA (1,787 ₹) and 200 DMA (1,819 ₹), reflecting weak technicals.
📈 Company Positive News
- Quarterly PAT recovery highlights operational improvement.
- DII holdings increased, showing domestic investor support.
- Debt-free balance sheet enhances financial stability.
🏦 Industry
- Industry P/E at 23.5 is far lower than CHOLAHLDNG’s 468, highlighting severe overvaluation.
- Financial holding sector outlook remains steady, but valuations are critical for sustainability.
🔎 Conclusion
CHOLAHLDNG earns a swing trade rating of 2.8. Entry near 1,650–1,670 ₹ offers a cautious opportunity, while exit around 1,800–1,820 ₹ is optimal. Despite debt-free status and profit recovery, extreme overvaluation, weak technicals, and poor efficiency metrics make this a high-risk swing trade candidate. Traders should adopt a conservative approach with strict stop-losses.