COFORGE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.1
| Stock Code | COFORGE | Market Cap | 54,238 Cr. | Current Price | 1,614 ₹ | High / Low | 1,994 ₹ |
| Stock P/E | 74.6 | Book Value | 179 ₹ | Dividend Yield | 0.94 % | ROCE | 13.9 % |
| ROE | 11.3 % | Face Value | 2.00 ₹ | DMA 50 | 1,722 ₹ | DMA 200 | 1,711 ₹ |
| Chg in FII Hold | 0.44 % | Chg in DII Hold | -1.20 % | PAT Qtr | 133 Cr. | PAT Prev Qtr | 332 Cr. |
| RSI | 39.9 | MACD | -22.6 | Volume | 48,83,045 | Avg Vol 1Wk | 18,36,600 |
| Low price | 1,191 ₹ | High price | 1,994 ₹ | PEG Ratio | -10.2 | Debt to equity | 0.08 |
| 52w Index | 52.7 % | Qtr Profit Var | 25.5 % | EPS | 20.3 ₹ | Industry PE | 24.8 |
📊 Based on the given parameters, COFORGE shows weak-to-moderate potential for swing trading. The stock is trading at 1,614 ₹, well below its 52-week high of 1,994 ₹, reflecting correction and bearish sentiment. Technical indicators (RSI 39.9, MACD negative) suggest downward momentum. The optimal entry price would be closer to 1,550–1,570 ₹ for risk-managed buying. If already holding, consider exiting near 1,700–1,720 ₹ (around 50 DMA resistance zone) to avoid further downside pressure.
✅ Positive
- Low debt-to-equity ratio of 0.08, indicating strong financial stability.
- FII holdings increased by 0.44%, showing foreign investor confidence.
- Quarterly PAT of 133 Cr. still reflects profitability despite decline.
- Strong trading volume (48.8 lakh) compared to weekly average, showing active participation.
⚠️ Limitation
- High P/E of 74.6 compared to industry average of 24.8, suggesting overvaluation.
- ROCE (13.9%) and ROE (11.3%) are modest, limiting efficiency appeal.
- Quarterly PAT dropped sharply from 332 Cr. to 133 Cr., showing earnings volatility.
- Negative PEG ratio (-10.2) indicates poor valuation relative to growth.
- DII holdings decreased (-1.20%), showing reduced domestic institutional interest.
- RSI below 40 and negative MACD (-22.6) highlight bearish technical trend.
📉 Company Negative News
- Sharp decline in quarterly profits raises concerns about earnings stability.
- Stock has corrected significantly from 52-week high, weakening sentiment.
📈 Company Positive News
- Strong foreign investor confidence with FII stake increase.
- Debt-free balance sheet provides financial resilience.
🏭 Industry
- IT services sector remains supported by global demand, though margin pressures persist.
- Industry P/E of 24.8 highlights COFORGE’s premium valuation, which may limit upside.
🔎 Conclusion
COFORGE is currently a weak swing trade candidate due to bearish technicals and high valuation. Entry near 1,550–1,570 ₹ offers better risk-reward if momentum stabilizes. If already holding, exit near 1,700–1,720 ₹ (50 DMA resistance zone) is advisable. While strong fundamentals like low debt and FII confidence provide long-term comfort, short-term swing trade outlook remains cautious.