CROMPTON - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.1

📊 CROMPTON shows moderate potential for swing trading. Current price (₹256) is below both 50 DMA (₹273) and 200 DMA (₹313), indicating bearish momentum. RSI at 40.4 and negative MACD (-6.69) suggest weakness, but strong ROCE (20.1%) and ROE (16.5%) provide fundamental support. Optimal entry would be near ₹250–₹255 if support holds. If already holding, exit near ₹270–₹275 resistance unless momentum improves.

✅ Positive

• 📈 Strong ROCE (20.1%) and ROE (16.5%) indicate efficient capital use
• 💰 Dividend yield at 1.17% adds investor appeal
• 📊 Low debt-to-equity (0.05) ensures financial stability
• 📉 High trading volume (1.6 Cr.) compared to average (51.6 Lakh) shows liquidity

⚠️ Limitation

• 📉 Current price below both 50 DMA and 200 DMA
• 📊 RSI and MACD show weak momentum
• 📉 PEG ratio negative (-19.3), limiting growth valuation
• ⚠️ FII holding decreased (-3.64%)

🚨 Company Negative News

• 📉 Quarterly profit dropped from ₹125 Cr. to ₹85.3 Cr. (-30.8%)
• ⚠️ EPS at ₹7.42 remains modest compared to valuation

🌟 Company Positive News

• 📊 DII holding increased (+2.31%), showing domestic investor confidence
• 📈 Strong fundamentals with high ROCE and ROE

🏭 Industry

• 📊 Industry P/E at 49.3, higher than company’s 33.4, suggesting relative undervaluation
• 📈 Consumer electrical sector has long-term growth potential

📌 Conclusion

⚖️ CROMPTON is a fair swing trade candidate with strong fundamentals but weak technical momentum. Entry is favorable near ₹250–₹255 if support holds. For existing holders, exit near ₹270–₹275 resistance is advisable unless momentum strengthens with improved RSI and MACD.

Would you like me to also highlight a short-term technical chart pattern for CROMPTON so you can visually track entry and exit zones?