COFORGE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | COFORGE | Market Cap | 36,678 Cr. | Current Price | 1,092 ₹ | High / Low | 1,994 ₹ |
| Stock P/E | 50.5 | Book Value | 179 ₹ | Dividend Yield | 1.39 % | ROCE | 13.9 % |
| ROE | 11.3 % | Face Value | 2.00 ₹ | DMA 50 | 1,372 ₹ | DMA 200 | 1,593 ₹ |
| Chg in FII Hold | 0.44 % | Chg in DII Hold | -1.20 % | PAT Qtr | 133 Cr. | PAT Prev Qtr | 332 Cr. |
| RSI | 26.6 | MACD | -99.8 | Volume | 27,21,187 | Avg Vol 1Wk | 45,75,474 |
| Low price | 1,008 ₹ | High price | 1,994 ₹ | PEG Ratio | -6.87 | Debt to equity | 0.08 |
| 52w Index | 8.54 % | Qtr Profit Var | 25.5 % | EPS | 20.3 ₹ | Industry PE | 20.8 |
📊 COFORGE shows limited potential for swing trading at present. The RSI at 26.6 indicates oversold conditions, suggesting possible rebound, but MACD (-99.8) reflects strong bearish momentum. Valuation is expensive with a P/E of 50.5 compared to industry PE of 20.8, and a negative PEG ratio (-6.87) signals poor growth-adjusted value. ROCE (13.9%) and ROE (11.3%) are modest, while quarterly PAT dropped sharply (₹332 Cr. to ₹133 Cr.). Institutional activity is mixed, with FII holdings up (+0.44%) but DII holdings down (-1.20%).
💡 Optimal Entry Price: Around ₹1,070–1,080, near support levels and below the 50 DMA (₹1,372).
📈 Exit Strategy (if already holding): Consider booking profits near ₹1,350–1,370, aligning with the 50 DMA resistance zone.
✅ Positive
- Debt-to-equity ratio of 0.08 indicates low leverage.
- Dividend yield of 1.39% adds investor appeal.
- FII holdings increased (+0.44%), showing foreign investor confidence.
⚠️ Limitation
- High P/E (50.5) compared to industry average (20.8).
- Negative PEG ratio (-6.87) highlights poor growth-adjusted valuation.
- Quarterly PAT declined sharply from ₹332 Cr. to ₹133 Cr.
- ROCE (13.9%) and ROE (11.3%) are modest compared to peers.
- DII holdings decreased (-1.20%), showing reduced domestic institutional support.
📉 Company Negative News
- No major negative news reported, but sharp earnings decline and high valuation remain concerns.
📈 Company Positive News
- Debt levels remain low, supporting financial stability.
- Dividend yield provides consistent returns to investors.
- FII inflows reflect foreign confidence despite weak earnings.
🏭 Industry
- Industry PE is 20.8, much lower than COFORGE’s 50.5, suggesting relative overvaluation.
- IT services sector benefits from global demand but faces margin pressures and cyclical volatility.
🔎 Conclusion
COFORGE is a cautious candidate for swing trading with entry near ₹1,070–1,080 and exit around ₹1,350–1,370. While low debt and dividend yield are positives, high valuation, sharp earnings decline, and bearish technicals limit upside. Suitable only for traders seeking short-term rebound opportunities with strict risk management.