COHANCE - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.4

📊 COHANCE shows weak short-term technicals but moderate fundamentals. The stock is trading well below its 50 DMA (658 ₹) and 200 DMA (873 ₹), reflecting bearish momentum. RSI at 26.7 indicates oversold conditions, while MACD (-40.9) confirms strong bearish sentiment. Despite this, the company maintains decent ROCE (16.0%) and ROE (12.5%), with low debt levels. Valuation is stretched with a P/E of 55.4 compared to industry PE of 30.6, making it a cautious swing trade candidate.

💡 Optimal Entry Price: Around 525–535 ₹ (near support zone close to 518 ₹).

🚪 Exit Strategy: If already holding, consider exiting near 650–670 ₹ (resistance at 50 DMA) or trail stop-loss below 510 ₹ to manage risk.

✅ Positive

• 📈 ROCE (16.0%) and ROE (12.5%) show moderate capital efficiency.
• 💰 Low debt-to-equity (0.05) ensures financial stability.
• 📊 DII holding increased (+9.41%), showing strong domestic institutional support.

⚠️ Limitation

• 📉 Trading far below 50 DMA and 200 DMA indicates weak technical strength.
• 📊 High P/E (55.4) compared to industry PE (30.6), suggesting overvaluation.
• 📉 Negative PEG ratio (-2.68) highlights poor growth alignment with valuation.
• 📉 No dividend yield reduces investor income appeal.

🚨 Company Negative News

• 📉 Quarterly profit variation (-32.2%) shows earnings decline.
• 📉 FII holding reduced (-0.72%), showing foreign investor caution.
• 📉 52-week return only 2.38%, reflecting weak overall performance.

🌟 Company Positive News

• 📈 PAT improved sequentially from 58.6 Cr. to 94.3 Cr. in the latest quarter.
• 💡 EPS at 12.0 ₹ supports earnings visibility.
• 📊 Strong DII support (+9.41%) adds confidence in domestic sentiment.

🏭 Industry

• 📊 Industry PE at 30.6, lower than COHANCE’s PE, suggesting sector trades at more reasonable valuations.
• 📈 Sector demand remains supportive, though valuations are stretched across peers.

📌 Conclusion

COHANCE is a cautious swing trade candidate with oversold technicals and moderate fundamentals. Entry near 525–535 ₹ offers a favorable risk-reward setup, while exits should be targeted around 650–670 ₹. Caution is advised due to declining profits, weak momentum, and stretched valuations, but strong DII support provides some stability for short-term trades.

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