DALBHARAT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.6
| Stock Code | DALBHARAT | Market Cap | 34,275 Cr. | Current Price | 1,832 ₹ | High / Low | 2,496 ₹ |
| Stock P/E | 235 | Book Value | 415 ₹ | Dividend Yield | 0.49 % | ROCE | 2.56 % |
| ROE | 2.36 % | Face Value | 2.00 ₹ | DMA 50 | 2,011 ₹ | DMA 200 | 2,071 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 1.18 % | PAT Qtr | 22.0 Cr. | PAT Prev Qtr | 14.0 Cr. |
| RSI | 35.7 | MACD | -63.4 | Volume | 2,78,441 | Avg Vol 1Wk | 1,91,020 |
| Low price | 1,680 ₹ | High price | 2,496 ₹ | PEG Ratio | -74.1 | Debt to equity | 0.00 |
| 52w Index | 18.6 % | Qtr Profit Var | 214 % | EPS | 7.68 ₹ | Industry PE | 27.0 |
📊 Dalmia Bharat (DALBHARAT) shows weak fundamentals with very high P/E (235), low ROCE (2.56%), and low ROE (2.36%). Technical indicators are bearish (RSI 35.7, MACD -63.4, price below 50 & 200 DMA). Despite recent profit growth, the valuation and weak efficiency ratios make it a risky swing trade candidate.
💡 Optimal Entry Price: Around ₹1,800–1,850, near support levels.
📈 Exit Strategy (if already holding): Consider exiting near ₹2,000–2,050 if recovery occurs, or cut losses if price falls below ₹1,780 decisively.
Positive
- Debt-free balance sheet (Debt-to-equity 0.00).
- Quarterly PAT improved from ₹14 Cr. to ₹22 Cr. (+214%).
- DII holdings increased (+1.18%), reflecting domestic institutional support.
- EPS of ₹7.68 shows earnings base.
Limitation
- Extremely high P/E (235) compared to industry average (27.0), suggesting steep overvaluation.
- Low ROCE (2.56%) and ROE (2.36%) indicate poor capital efficiency.
- PEG ratio (-74.1) suggests weak growth-adjusted valuation.
- Price trading below both 50 DMA (2,011) and 200 DMA (2,071), confirming bearish trend.
Company Negative News
- FII holdings decreased (-0.83%), showing reduced foreign investor confidence.
- Technical weakness with RSI near oversold zone and MACD negative.
Company Positive News
- DII holdings increased (+1.18%), reflecting domestic support.
- Quarterly PAT growth (+214%) shows operational improvement despite weak fundamentals.
Industry
- Industry P/E at 27.0 is far lower than DALBHARAT’s, suggesting the stock trades at a steep premium.
- Cement sector remains cyclical, influenced by infrastructure demand and government spending.
Conclusion
⚖️ Dalmia Bharat is fundamentally weak and technically bearish, with high valuation and poor efficiency ratios. Swing traders may cautiously enter near support (~₹1,800–1,850) and exit near resistance (~₹2,000–2,050). Conservative traders should avoid until technical indicators improve and earnings stabilize.