CROMPTON - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.6

📊 Analysis Summary

Crompton Greaves Consumer Electricals (CROMPTON) is currently trading in a technical downtrend, but shows signs of potential reversal. The stock is near its 52-week low and has a strong quarterly profit rebound, making it a moderate candidate for a swing trade if momentum indicators improve. Risk is manageable due to solid fundamentals and low debt.

🔍 Technical Indicators

RSI (36.8): Near oversold — potential for bounce.

MACD (-4.56): Bearish — momentum still weak.

Price vs DMA

Current Price (₹328) is below both 50 DMA (₹344) and 200 DMA (₹356) — bearish setup.

Volume: Slightly below average — neutral sentiment.

📈 Fundamental Snapshot

P/E (38.0) vs Industry PE (53.3): Fairly valued.

PEG Ratio (-20.3): Negative — may indicate inconsistent growth estimates.

ROE (17.4%) & ROCE (19.0%): Solid — efficient use of capital.

EPS (₹8.64) vs Price (₹328): Reasonable valuation.

Qtr Profit Growth (+27.0%): Strong — earnings momentum improving.

FII Holding ↓ (-1.13%): Foreign selling — sentiment cautious.

DII Holding ↑ (+1.88%): Domestic support — positive signal.

Debt to Equity (0.14): Low — strong financial health.

Dividend Yield (0.92%): Decent — adds downside cushion.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹320–₹325 range, near support zone.

Wait for RSI to cross 40 and MACD to flatten or turn positive.

Confirm with volume pickup and price stabilizing above 50 DMA.

🚪 Exit Strategy (If Already Holding)

Exit near ₹355–₹360, close to 200 DMA resistance.

If price drops below ₹315, consider stop-loss at ₹305 to manage risk.

⚖️ Final Verdict

CROMPTON is a technically weak but fundamentally stable stock with improving earnings and low debt. It offers a moderate swing trade opportunity if technical indicators begin to reverse. Best suited for traders looking to play a recovery bounce with defined risk levels.

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