CROMPTON - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.4
| Stock Code | CROMPTON | Market Cap | 17,756 Cr. | Current Price | 276 ₹ | High / Low | 364 ₹ |
| Stock P/E | 50.7 | Book Value | 49.4 ₹ | Dividend Yield | 1.09 % | ROCE | 19.0 % |
| ROE | 10.3 % | Face Value | 2.00 ₹ | DMA 50 | 269 ₹ | DMA 200 | 277 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.38 % | PAT Qtr | 116 Cr. | PAT Prev Qtr | 112 Cr. |
| RSI | 53.4 | MACD | -1.69 | Volume | 16,41,294 | Avg Vol 1Wk | 27,07,767 |
| Low price | 217 ₹ | High price | 364 ₹ | PEG Ratio | -5.38 | Debt to equity | 0.06 |
| 52w Index | 39.7 % | Qtr Profit Var | -31.7 % | EPS | -3.78 ₹ | Industry PE | 48.6 |
Crompton Greaves Consumer shows moderate fundamentals with decent ROCE, low debt, and stable dividend yield. However, the very high P/E ratio, negative EPS, weak ROE, and declining quarterly profits raise caution. Technically, the stock is trading near its 50 DMA and 200 DMA, with RSI at 53.4 and MACD negative, suggesting neutral to weak momentum. It is a cautious candidate for swing trading with limited upside potential.
💡 Optimal Entry Price: Around 265–270 ₹ (near support levels close to DMA 50).
📈 Exit Strategy: If already holding, consider booking profits near 290–300 ₹ or exit if price falls below 260 ₹ (support zone).
✅ Positive
- 📈 ROCE at 19% shows moderate efficiency.
- 💰 Low debt-to-equity ratio of 0.06 ensures financial stability.
- 📊 Dividend yield of 1.09% adds investor appeal.
- 📉 Price trading close to DMA 50 and DMA 200, offering technical support.
⚠️ Limitation
- 📉 High P/E ratio of 50.7 compared to industry average of 48.6.
- 📉 Weak ROE at 10.3% indicates limited shareholder returns.
- 📉 Negative EPS (-3.78 ₹) raises valuation concerns.
- 📉 Negative PEG ratio (-5.38) suggests poor valuation relative to growth.
📰 Company Negative News
- 📉 Decline in FII holding (-0.06%) shows reduced foreign investor confidence.
- 📉 Quarterly profit variation (-31.7%) indicates earnings pressure.
🌟 Company Positive News
- 📈 Increase in DII holding (+0.38%) signals domestic institutional support.
- 📊 PAT improved slightly from 112 Cr. to 116 Cr. quarter-on-quarter.
🏭 Industry
- 📊 Industry P/E at 48.6, slightly lower than Crompton’s 50.7, suggesting sector is moderately valued.
- 📈 Consumer electricals industry remains resilient with steady demand but faces margin pressures.
📌 Conclusion
Crompton Greaves Consumer presents a cautious swing trade opportunity. While low debt and institutional support are positives, high valuation, negative EPS, and weak momentum limit upside. Entry is favorable near 265–270 ₹, with profit booking advised around 290–300 ₹. Risk management is essential due to earnings volatility and valuation concerns.