⚠ 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
Back to ListSwing Trade Rating: 3.1
| Stock Code | CROMPTON | Market Cap | 14,974 Cr. | Current Price | 233 ₹ | High / Low | 372 ₹ |
| Stock P/E | 30.4 | Book Value | 56.1 ₹ | Dividend Yield | 1.29 % | ROCE | 20.1 % |
| ROE | 16.5 % | Face Value | 2.00 ₹ | DMA 50 | 250 ₹ | DMA 200 | 295 ₹ |
| Chg in FII Hold | -5.01 % | Chg in DII Hold | 4.49 % | PAT Qtr | 85.3 Cr. | PAT Prev Qtr | 125 Cr. |
| RSI | 42.3 | MACD | -8.29 | Volume | 47,01,107 | Avg Vol 1Wk | 41,64,209 |
| Low price | 217 ₹ | High price | 372 ₹ | PEG Ratio | -17.6 | Debt to equity | 0.05 |
| 52w Index | 9.92 % | Qtr Profit Var | -30.8 % | EPS | 7.42 ₹ | Industry PE | 48.5 |
📊 Crompton Greaves Consumer Electricals shows decent fundamentals but weak technical momentum and declining profits. It is a cautious candidate for swing trading, suitable only for short-term trades near support levels.
✅ Optimal Entry Price: 225–230 ₹ (close to support zone near 52-week low)
🚪 Exit Strategy if Holding: Consider exiting near 250–255 ₹ (around 50 DMA resistance) or if RSI rises above 55.
Positive
- 💡 ROCE (20.1%) and ROE (16.5%) indicate efficient capital usage.
- 📈 Strong market cap of 14,974 Cr. ensures liquidity.
- 🏦 Very low debt-to-equity ratio (0.05), showing financial stability.
- 💰 Dividend yield of 1.29% adds investor confidence.
Limitation
- ⚠️ Current P/E (30.4) is high compared to book value and industry fundamentals.
- 📉 RSI at 42.3 and MACD (-8.29) indicate weak momentum.
- 🔻 Quarterly profit declined (-30.8%), showing earnings pressure.
- 📊 PEG ratio (-17.6) suggests poor valuation relative to growth.
Company Negative News
- 📉 Decline in FII holdings (-5.01%) shows reduced foreign investor confidence.
- 📊 PAT dropped from 125 Cr. to 85.3 Cr., reflecting earnings weakness.
Company Positive News
- 📈 Increase in DII holdings (+4.49%) reflects strong domestic institutional support.
- 📊 Healthy trading volumes above weekly average indicate active participation.
Industry
- 🏭 Industry P/E at 48.5 is higher than Crompton’s 30.4, suggesting relative undervaluation compared to peers.
- 📈 Consumer electricals sector remains resilient with steady demand for appliances and home solutions.
Conclusion
🔎 Crompton is fundamentally stable but technically weak in the short term. Swing traders may enter near 225–230 ₹ and exit near 250–255 ₹. Monitoring RSI and MACD is crucial, as momentum indicators suggest limited upside unless a reversal occurs.