COROMANDEL - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.2

📊 COROMANDEL shows strong potential for swing trading. The stock is trading above both its 50 DMA (2,273 ₹) and 200 DMA (2,187 ₹), reflecting bullish momentum. RSI at 45.1 suggests neutral strength, while MACD (8.88) indicates positive momentum. Fundamentally, the company is solid with high ROCE (24.6%) and ROE (17.5%), supported by consistent profit growth. Valuation is slightly stretched with a P/E of 32.8 compared to industry PE of 20.3, but strong earnings and sector demand make it attractive for short-term trades.

💡 Optimal Entry Price: Around 2,370–2,390 ₹ (near support zone close to 50 DMA).

🚪 Exit Strategy: If already holding, consider exiting near 2,500–2,550 ₹ (resistance zone) or trail stop-loss below 2,350 ₹ to manage risk.

✅ Positive

• 📈 Strong ROCE (24.6%) and ROE (17.5%) highlight efficient capital use.
• 💰 Low debt-to-equity (0.05) ensures financial stability.
• 📊 Quarterly PAT growth (+17.3%) shows earnings resilience.
• 📈 52-week return of 72.2% reflects strong past performance.

⚠️ Limitation

• 📉 P/E of 32.8 is higher than industry PE (20.3), suggesting premium valuation.
• 📊 PEG ratio (4.12) indicates growth is not aligned with valuation.
• 📉 Dividend yield (0.52%) offers limited income support.

🚨 Company Negative News

• 📉 Valuation multiples are stretched compared to peers.
• 📉 FII holding reduced (-0.17%), showing slight foreign investor caution.

🌟 Company Positive News

• 📈 PAT improved from 508 Cr. to 816 Cr. in the latest quarter.
• 💡 DII holding increased (+0.02%), reflecting domestic institutional confidence.
• 📊 EPS at 75.9 ₹ supports earnings visibility.

🏭 Industry

• 📊 Industry PE at 20.3, lower than COROMANDEL’s PE, suggesting sector trades at more reasonable valuations.
• 📈 Agriculture and fertilizer sector demand remains strong, driven by rural growth and government support.

📌 Conclusion

COROMANDEL is a strong swing trade candidate with bullish technicals and solid fundamentals. Entry near 2,370–2,390 ₹ offers a favorable risk-reward setup, while exits should be targeted around 2,500–2,550 ₹. Caution is advised due to stretched valuations and slight FII reduction, but overall fundamentals and sector momentum provide strong support for short-term trades.

I can also prepare a comparison of COROMANDEL with another fertilizer sector stock to highlight relative swing trade strength.