DALBHARAT - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 2.5

📊 DALBHARAT currently shows weak potential for swing trading. The stock trades at ₹2,013, below both 50 DMA (₹2,078) and 200 DMA (₹2,089), reflecting bearish sentiment. RSI at 47.6 is neutral, while MACD (-5.42) signals negative momentum. Valuation is extremely stretched with a P/E of 288 compared to industry average of 33.2, and fundamentals (ROCE 2.56%, ROE 2.36%) remain weak. Optimal entry would be near ₹1,950–₹1,980 if support holds. If already holding, exit near ₹2,080–₹2,100 resistance unless momentum improves.

✅ Positive

• 📈 Debt-free balance sheet (Debt-to-equity 0.00)
• 📊 Institutional interest: FII +0.52%, DII +0.44%
• 📉 EPS at ₹6.98 provides some valuation support

⚠️ Limitation

• 📉 Current price below both 50 DMA and 200 DMA
• 📊 RSI neutral but MACD negative
• 📉 Extremely high P/E ratio (288 vs industry 33.2)
• ⚠️ Weak ROCE (2.56%) and ROE (2.36%)

🚨 Company Negative News

• 📉 PAT declined from ₹33 Cr. to ₹14 Cr. quarter-on-quarter
• ⚠️ PEG ratio negative (-90.9), limiting growth valuation

🌟 Company Positive News

• 📈 Debt-free balance sheet strengthens financial stability
• 📊 Institutional investors marginally increased holdings

🏭 Industry

• 📊 Industry P/E at 33.2, far lower than company’s 288
• 📈 Cement sector has cyclical demand but valuations remain more reasonable for peers

📌 Conclusion

⚖️ DALBHARAT is not an ideal swing trade candidate due to stretched valuations and weak fundamentals. Entry is only favorable near ₹1,950–₹1,980 if support holds. For existing holders, exit near ₹2,080–₹2,100 resistance is advisable unless RSI and MACD show stronger recovery.

I can also prepare a peer comparison within the cement sector to highlight whether DALBHARAT is underperforming or overvalued relative to competitors.