⚠ 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.

CROMPTON - Swing Trade Analysis with AI Signals

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Rating: 4

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

📊 Swing Trade Rating: 4.0

Stock Code CROMPTON Market Cap 17,538 Cr. Current Price 272 ₹ High / Low 364 ₹
Stock P/E 35.6 Book Value 56.1 ₹ Dividend Yield 1.10 % ROCE 20.1 %
ROE 16.5 % Face Value 2.00 ₹ DMA 50 252 ₹ DMA 200 276 ₹
Chg in FII Hold -0.06 % Chg in DII Hold 0.38 % PAT Qtr 112 Cr. PAT Prev Qtr 85.3 Cr.
RSI 63.2 MACD 6.55 Volume 76,37,855 Avg Vol 1Wk 1,03,49,312
Low price 217 ₹ High price 364 ₹ PEG Ratio -20.6 Debt to equity 0.05
52w Index 37.4 % Qtr Profit Var 0.17 % EPS 7.21 ₹ Industry PE 46.7

Analysis: Crompton Greaves Consumer (CROMPTON) shows a balanced profile. Current price (272 ₹) is above DMA 50 (252 ₹) but slightly below DMA 200 (276 ₹), suggesting near-term resistance. RSI at 63.2 indicates mildly overbought conditions, while MACD (6.55) supports bullish momentum. Fundamentals are decent with ROCE (20.1%) and ROE (16.5%), supported by low debt-to-equity (0.05). Quarterly PAT improved (112 Cr. vs 85.3 Cr.), but valuation is stretched with P/E of 35.6 compared to industry PE of 46.7. PEG ratio (-20.6) highlights growth concerns despite stable earnings.

Optimal Entry Price: Around 260–265 ₹ (near support zone).

Exit Strategy if Holding: Consider booking profits near 285–295 ₹ unless momentum breaks above 300 ₹ resistance.

✅ Positive

  • Strong ROCE (20.1%) and ROE (16.5%).
  • Debt-to-equity ratio of 0.05 ensures financial stability.
  • Quarterly PAT growth (112 Cr. vs 85.3 Cr.) shows improving performance.
  • DII holdings increased (+0.38%), reflecting domestic investor confidence.

⚠️ Limitation

  • Valuation premium with P/E of 35.6.
  • RSI at 63.2 indicates mildly overbought conditions.
  • FII holdings decreased (-0.06%), showing reduced foreign interest.
  • PEG ratio (-20.6) suggests weak growth prospects.

📰 Company Negative News

  • No major negative news reported, but valuation and growth concerns remain.

🌟 Company Positive News

  • Quarterly profit growth supports investor sentiment.
  • Low debt enhances financial flexibility.

🏭 Industry

  • Industry P/E at 46.7 suggests Crompton trades at a discount compared to peers.
  • Consumer electricals sector remains resilient with steady demand.

📌 Conclusion

Crompton is a reasonably good candidate for swing trading. Entry around 260–265 ₹ offers a favorable risk-reward setup, while exit near 285–295 ₹ is advisable unless momentum breaks above 300 ₹. Strong fundamentals and low debt are positives, but valuation and growth concerns warrant cautious optimism.

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