⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

COROMANDEL - Swing Trade Analysis with AI Signals

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Rating: 3.8

Last Updated Time : 05 May 26, 03:11 pm

📊 Swing Trade Rating: 3.8

Stock Code COROMANDEL Market Cap 58,463 Cr. Current Price 1,982 ₹ High / Low 2,720 ₹
Stock P/E 27.0 Book Value 410 ₹ Dividend Yield 0.61 % ROCE 24.6 %
ROE 17.5 % Face Value 1.00 ₹ DMA 50 2,076 ₹ DMA 200 2,160 ₹
Chg in FII Hold -0.77 % Chg in DII Hold 1.50 % PAT Qtr 530 Cr. PAT Prev Qtr 816 Cr.
RSI 43.3 MACD -13.0 Volume 4,18,368 Avg Vol 1Wk 3,29,164
Low price 1,818 ₹ High price 2,720 ₹ PEG Ratio 3.39 Debt to equity 0.05
52w Index 18.1 % Qtr Profit Var 0.86 % EPS 76.1 ₹ Industry PE 18.5

Analysis: Coromandel International (COROMANDEL) shows decent fundamentals with ROCE of 24.6% and ROE of 17.5%. The debt-to-equity ratio is very low (0.05), which is a positive. Current price (1,982 ₹) is below both DMA 50 (2,076 ₹) and DMA 200 (2,160 ₹), indicating weakness in trend. RSI at 43.3 suggests the stock is approaching oversold territory, while MACD (-13.0) signals bearish momentum. Quarterly PAT dropped significantly (530 Cr. vs 816 Cr.), raising caution. Valuation is stretched with P/E of 27.0 compared to industry PE of 18.5, and PEG ratio of 3.39 suggests limited growth potential.

Optimal Entry Price: Around 1,900–1,950 ₹ (near support zone).

Exit Strategy if Holding: Consider booking profits near 2,100–2,150 ₹ unless momentum strengthens above 2,160 ₹ resistance.

✅ Positive

  • Strong ROCE (24.6%) and ROE (17.5%).
  • Debt-to-equity ratio of 0.05 ensures financial stability.
  • DII holdings increased (+1.50%), showing domestic investor confidence.
  • Large market cap of 58,463 Cr. adds stability.

⚠️ Limitation

  • Quarterly PAT dropped sharply (530 Cr. vs 816 Cr.).
  • Stock trades below both DMA 50 and DMA 200, indicating weak momentum.
  • FII holdings decreased (-0.77%), showing reduced foreign interest.
  • High PEG ratio (3.39) limits growth prospects.

📰 Company Negative News

  • No major negative news reported, but profit decline and weak technicals are concerns.

🌟 Company Positive News

  • Strong efficiency metrics (ROCE and ROE).
  • Debt-free balance sheet enhances financial flexibility.
  • Domestic institutional investors increased their stake.

🏭 Industry

  • Industry P/E at 18.5 suggests Coromandel trades at a premium.
  • Agriculture and fertilizer sector remains cyclical but essential, with long-term demand stability.

📌 Conclusion

Coromandel International is a moderate candidate for swing trading. Entry around 1,900–1,950 ₹ offers a safer risk-reward setup, while exit near 2,100–2,150 ₹ is advisable unless momentum strengthens above 2,160 ₹. Strong fundamentals and low debt are positives, but profit decline and premium valuation warrant cautious optimism.

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