⚠ 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.
DALBHARAT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | DALBHARAT | Market Cap | 39,566 Cr. | Current Price | 2,109 ₹ | High / Low | 2,496 ₹ |
| Stock P/E | 271 | Book Value | 415 ₹ | Dividend Yield | 0.42 % | ROCE | 2.56 % |
| ROE | 2.36 % | Face Value | 2.00 ₹ | DMA 50 | 2,098 ₹ | DMA 200 | 2,094 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 1.18 % | PAT Qtr | 22.0 Cr. | PAT Prev Qtr | 14.0 Cr. |
| RSI | 46.3 | MACD | -8.88 | Volume | 5,01,255 | Avg Vol 1Wk | 4,16,816 |
| Low price | 1,601 ₹ | High price | 2,496 ₹ | PEG Ratio | -85.5 | Debt to equity | 0.00 |
| 52w Index | 56.8 % | Qtr Profit Var | 214 % | EPS | 7.68 ₹ | Industry PE | 30.6 |
📊 Dalmia Bharat (DALBHARAT) shows weak efficiency ratios and extremely high valuation despite recent profit growth. It is a risky candidate for swing trading, suitable only for cautious short-term trades near strong support levels.
✅ Optimal Entry Price: 2,080–2,100 ₹ (near 50 DMA and 200 DMA support)
🚪 Exit Strategy if Holding: Consider exiting near 2,180–2,200 ₹ (short-term resistance zone) or if RSI moves above 55.
Positive
- 💡 EPS of 7.68 ₹ provides earnings base.
- 📈 PAT improved from 14 Cr. to 22 Cr. (+214%), showing sequential growth.
- 🏦 Debt-free balance sheet (Debt-to-equity: 0.00) ensures financial stability.
- 📊 Large market cap of 39,566 Cr. ensures liquidity.
- 📈 Increase in DII holdings (+1.18%) reflects domestic institutional support.
Limitation
- ⚠️ Extremely high P/E (271) compared to industry average (30.6), suggesting severe overvaluation.
- 📉 Very weak ROCE (2.56%) and ROE (2.36%) indicate poor efficiency.
- 🔻 MACD (-8.88) signals bearish momentum.
- 📊 PEG ratio (-85.5) suggests poor valuation relative to growth.
- 💰 Dividend yield of 0.42% is modest, reducing passive income appeal.
Company Negative News
- 📉 Decline in FII holdings (-0.83%) shows reduced foreign investor confidence.
- 📊 Weak return ratios compared to peers despite profit growth.
Company Positive News
- 📈 Sequential PAT growth (+214%) indicates operational improvement.
- 📊 Increase in DII holdings (+1.18%) shows growing domestic institutional trust.
Industry
- 🏭 Industry P/E at 30.6 is far lower than DALBHARAT’s 271, highlighting extreme premium valuation.
- 📈 Cement and infrastructure sector remains crucial, supported by government spending and construction demand.
Conclusion
🔎 Dalmia Bharat is fundamentally overvalued and technically weak, despite recent profit growth. Swing traders may cautiously enter near 2,080–2,100 ₹ and exit near 2,180–2,200 ₹. Monitoring RSI and MACD is essential, as momentum indicators suggest limited upside unless a reversal occurs.