DALBHARAT - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.3
| Stock Code | DALBHARAT | Market Cap | 32,304 Cr. | Current Price | 1,722 ₹ | High / Low | 2,496 ₹ |
| Stock P/E | 235 | Book Value | 420 ₹ | Dividend Yield | 0.52 % | ROCE | 2.07 % |
| ROE | 1.75 % | Face Value | 2.00 ₹ | DMA 50 | 1,791 ₹ | DMA 200 | 1,953 ₹ |
| Chg in FII Hold | -0.77 % | Chg in DII Hold | 1.26 % | PAT Qtr | 74.8 Cr. | PAT Prev Qtr | 22.0 Cr. |
| RSI | 46.4 | MACD | -29.9 | Volume | 2,29,941 | Avg Vol 1Wk | 2,80,708 |
| Low price | 1,605 ₹ | High price | 2,496 ₹ | PEG Ratio | -21.6 | Debt to equity | 0.03 |
| 52w Index | 13.1 % | Qtr Profit Var | -2.88 % | EPS | 7.52 ₹ | Industry PE | 29.9 |
Dalmia Bharat shows weak fundamentals with very high P/E ratio, poor ROCE and ROE, and negative PEG ratio. While debt levels are low and quarterly profits improved compared to the previous quarter, the overall earnings efficiency remains weak. Technically, the stock is trading below both its 50 DMA and 200 DMA, with RSI at 46.4 and MACD negative, indicating bearish momentum. It is a risky candidate for swing trading with limited upside potential.
💡 Optimal Entry Price: Around 1,680–1,700 ₹ (near support levels).
📈 Exit Strategy: If already holding, consider booking profits near 1,800–1,850 ₹ (short-term resistance) or exit if price falls below 1,650 ₹ (support zone).
✅ Positive
- 📈 Large market cap of 32,304 Cr. provides stability.
- 💰 Low debt-to-equity ratio of 0.03 ensures financial safety.
- 📊 PAT improved from 22 Cr. to 74.8 Cr. quarter-on-quarter.
- 📉 EPS at 7.52 ₹ provides some earnings base.
⚠️ Limitation
- 📉 Extremely high P/E ratio of 235 compared to industry average of 29.9.
- 📉 Weak ROCE at 2.07% and ROE at 1.75% indicate poor efficiency.
- 📉 Negative PEG ratio (-21.6) suggests unsustainable valuation relative to growth.
- 📉 Trading below both DMA 50 and DMA 200, indicating bearish trend.
📰 Company Negative News
- 📉 Decline in FII holding (-0.77%) shows reduced foreign investor confidence.
- 📉 Quarterly profit variation (-2.88%) indicates earnings pressure despite sequential improvement.
🌟 Company Positive News
- 📈 Increase in DII holding (+1.26%) signals domestic institutional support.
- 📊 PAT improved significantly compared to previous quarter.
🏭 Industry
- 📊 Industry P/E at 29.9, far lower than Dalmia Bharat’s 235, suggesting sector is moderately valued while the stock is highly overvalued.
- 📈 Cement industry remains cyclical but benefits from infrastructure demand.
📌 Conclusion
Dalmia Bharat presents a weak swing trade opportunity. While low debt and recent profit improvement are positives, extremely high valuation, poor efficiency metrics, and bearish technicals limit upside. Entry is favorable near 1,680–1,700 ₹, with profit booking advised around 1,800–1,850 ₹. Risk management is crucial due to overvaluation and weak fundamentals.