COALINDIA - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 4.5

📊 COALINDIA shows strong potential for swing trading. The stock is trading close to its 50 DMA (383 ₹) and 200 DMA (390 ₹), reflecting stability at key support levels. RSI at 55.8 suggests healthy momentum without being overbought, while MACD (0.60) indicates mild bullish sentiment. Fundamentally, the company is robust with zero debt, high ROCE (96.6%), ROE (96.1%), and a strong dividend yield (6.90%). Valuation remains attractive with a P/E of 11.2 compared to industry PE of 12.4, making it a favorable candidate for short-term trades.

💡 Optimal Entry Price: Around 380–385 ₹ (near DMA support).

🚪 Exit Strategy: If already holding, consider exiting near 410–415 ₹ (resistance zone close to recent highs) or trail stop-loss below 370 ₹ to manage risk.

✅ Positive

• 📈 High ROCE (96.6%) and ROE (96.1%) reflect exceptional capital efficiency.
• 💰 Strong dividend yield (6.90%) provides steady income support.
• 📊 Low debt-to-equity (0.03) ensures financial stability.
• 📈 Quarterly profit growth (+102%) highlights strong earnings momentum.

⚠️ Limitation

• 📉 Trading near resistance (417 ₹) may limit immediate upside potential.
• 📊 Book value (32.4 ₹) is significantly lower than current price, suggesting stretched valuation on assets.
• 📉 Volume lower than weekly average indicates reduced trading activity.

🚨 Company Negative News

• 📉 FII holding reduced (-0.20%), showing slight foreign investor caution.

🌟 Company Positive News

• 📈 DII holding increased (+0.14%), reflecting domestic institutional confidence.
• 💡 PAT surged from 116 Cr. to 8,342 Cr. in the latest quarter.

🏭 Industry

• 📊 Industry PE at 12.4, slightly higher than COALINDIA’s PE (11.2), suggesting undervaluation relative to peers.
• 📈 Energy sector demand remains strong, supporting coal and power generation businesses.

📌 Conclusion

COALINDIA is a strong swing trade candidate with robust fundamentals, attractive valuation, and high dividend yield. Entry near 380–385 ₹ offers a favorable risk-reward setup, while exits should be targeted around 410–415 ₹. Caution is advised near resistance levels, but overall fundamentals and sector momentum provide strong support for short-term trades.

Would you like me to also contrast COALINDIA’s swing trade potential with another energy sector stock to highlight relative strength?