COLPAL - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.2

📊 Analysis Summary

COLPAL is currently in a deep technical correction, trading near its 52-week low with extremely oversold indicators. While the fundamentals show strong efficiency and low debt, the high valuation and weak momentum make it a risky swing trade unless a clear reversal is confirmed.

🔍 Technical Indicators

RSI (24.1): Extremely oversold — potential for a technical bounce.

MACD (-53.7): Strongly bearish — momentum is weak.

Price vs DMA

Current Price (₹2,215) is well below 50 DMA (₹2,407) and 200 DMA (₹2,600) — bearish trend.

Volume: Slightly below average — declining interest.

📈 Fundamental Snapshot

P/E (140) vs Industry PE (59.2): Highly overvalued.

PEG Ratio (4.20): Expensive — growth is overpriced.

ROE (158%) & ROCE (179%): Exceptionally high — strong operational efficiency.

EPS (₹16.0) vs Price (₹2,215): Valuation is stretched.

Dividend Yield (2.30%): Attractive — provides downside cushion.

FII Holding ↓ (-1.84%): Foreign selling — bearish.

DII Holding ↑ (1.50%): Domestic accumulation — mildly supportive.

Debt to Equity (0.01): Virtually debt-free — excellent financial health.

52w Index (1.24%): Near yearly low — sentiment is weak.

Note: PAT and Qtr Profit Variation data are missing, which limits earnings momentum analysis.

✅ Entry Strategy (If Not Holding)

Avoid entry until reversal is confirmed.

Optimal Entry Price: ₹2,200–₹2,215 range, but only if RSI rises above 30 and MACD flattens.

Look for bullish candlestick pattern and volume spike before entering.

🚪 Exit Strategy (If Already Holding)

Exit near ₹2,400–₹2,450, close to 50 DMA resistance.

If price breaks below ₹2,190, consider stop-loss at ₹2,150 to protect downside.

⚖️ Final Verdict

COLPAL is technically oversold but fundamentally efficient. However, its high valuation and weak sentiment make it a speculative swing trade. Best suited for short-term bounce trades with tight risk control. Wait for confirmation before entry; if already holding, consider exiting on recovery toward moving averages.

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