CROMPTON - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.1
| Stock Code | CROMPTON | Market Cap | 15,568 Cr. | Current Price | 242 ₹ | High / Low | 368 ₹ |
| Stock P/E | 31.6 | Book Value | 56.1 ₹ | Dividend Yield | 1.24 % | ROCE | 20.1 % |
| ROE | 16.5 % | Face Value | 2.00 ₹ | DMA 50 | 253 ₹ | DMA 200 | 284 ₹ |
| Chg in FII Hold | -5.01 % | Chg in DII Hold | 4.49 % | PAT Qtr | 112 Cr. | PAT Prev Qtr | 85.3 Cr. |
| RSI | 40.2 | MACD | -2.21 | Volume | 17,99,512 | Avg Vol 1Wk | 20,22,982 |
| Low price | 217 ₹ | High price | 368 ₹ | PEG Ratio | -18.3 | Debt to equity | 0.05 |
| 52w Index | 16.7 % | Qtr Profit Var | 0.17 % | EPS | 7.21 ₹ | Industry PE | 44.2 |
📊 Crompton Greaves Consumer (CROMPTON) has decent fundamentals with ROCE (20.1%) and ROE (16.5%), but technical indicators are weak (RSI 40.2, MACD -2.21, price below 50 & 200 DMA). The stock shows bearish momentum, making it a cautious candidate for swing trading.
💡 Optimal Entry Price: Around ₹235–240, near recent support levels.
📈 Exit Strategy (if already holding): Consider exiting near ₹255–265 if recovery occurs, or cut losses if price falls below ₹230 decisively.
Positive
- ROCE (20.1%) and ROE (16.5%) indicate efficient capital use.
- Low debt-to-equity ratio (0.05) ensures financial stability.
- Dividend yield of 1.24% provides steady income.
- Quarterly PAT improved from ₹85.3 Cr. to ₹112 Cr.
Limitation
- Stock P/E (31.6) is higher than industry average (44.2), but valuation remains stretched relative to earnings.
- PEG ratio (-18.3) suggests poor growth-adjusted valuation.
- Price trading below both 50 DMA (253) and 200 DMA (284), confirming bearish trend.
- EPS of ₹7.21 is modest compared to peers.
Company Negative News
- FII holdings dropped significantly (-5.01%), showing reduced foreign investor confidence.
- Technical weakness with RSI near oversold zone and MACD negative.
Company Positive News
- DII holdings increased (+4.49%), reflecting strong domestic institutional support.
- Quarterly PAT growth shows resilience despite market weakness.
Industry
- Industry P/E at 44.2 is higher than Crompton’s, suggesting peers trade at richer valuations.
- Consumer electricals sector remains stable with long-term demand driven by housing and infrastructure growth.
Conclusion
⚖️ Crompton Greaves Consumer is fundamentally stable but technically weak at present. It may be suitable for cautious swing traders who enter near support (~₹235–240) and exit near resistance (~₹255–265). Risk management is essential, as momentum indicators suggest limited upside in the short term.