DCMSHRIRAM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.0
| Stock Code | DCMSHRIRAM | Market Cap | 16,336 Cr. | Current Price | 1,047 ₹ | High / Low | 1,502 ₹ |
| Stock P/E | 24.1 | Book Value | 464 ₹ | Dividend Yield | 0.86 % | ROCE | 10.8 % |
| ROE | 8.07 % | Face Value | 2.00 ₹ | DMA 50 | 1,097 ₹ | DMA 200 | 1,162 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.07 % | PAT Qtr | 237 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 47.0 | MACD | -18.5 | Volume | 26,599 | Avg Vol 1Wk | 79,153 |
| Low price | 945 ₹ | High price | 1,502 ₹ | PEG Ratio | -1.28 | Debt to equity | 0.30 |
| 52w Index | 18.4 % | Qtr Profit Var | -4.77 % | EPS | 41.1 ₹ | Industry PE | 23.4 |
📊 DCM Shriram (DCMSHRIRAM) shows moderate fundamentals with ROCE (10.8%) and ROE (8.07%). Technical indicators are weak (MACD -18.5, price below 50 & 200 DMA), though RSI at 47 suggests neutral momentum. The stock is not strongly positioned for swing trading, but cautious entry near support could be considered.
💡 Optimal Entry Price: Around ₹1,030–1,050, near support levels.
📈 Exit Strategy (if already holding): Consider exiting near ₹1,100–1,120 if recovery occurs, or cut losses if price falls below ₹1,020 decisively.
Positive
- Book value of ₹464 provides valuation support.
- Dividend yield of 0.86% adds investor confidence.
- EPS of ₹41.1 shows earnings base.
- Quarterly PAT improved from ₹168 Cr. to ₹237 Cr.
- Low debt-to-equity ratio (0.30) ensures manageable leverage.
Limitation
- ROCE (10.8%) and ROE (8.07%) are relatively weak compared to peers.
- PEG ratio (-1.28) suggests poor growth-adjusted valuation.
- Price trading below both 50 DMA (1,097) and 200 DMA (1,162), confirming bearish trend.
- Quarterly profit variation (-4.77%) indicates earnings pressure.
Company Negative News
- Technical weakness with MACD negative and price below moving averages.
- Quarterly profit variation shows decline despite higher PAT.
Company Positive News
- FII holdings slightly increased (+0.01%), showing marginal foreign interest.
- DII holdings also increased (+0.07%), reflecting domestic support.
Industry
- Industry P/E at 23.4 is close to DCM Shriram’s 24.1, suggesting fair valuation.
- Agriculture and chemicals sector remains cyclical, influenced by commodity prices and government policies.
Conclusion
⚖️ DCM Shriram is fundamentally moderate but technically weak, with limited upside in the short term. Swing traders may cautiously enter near support (~₹1,030–1,050) and exit near resistance (~₹1,100–1,120). Conservative traders should wait for stronger technical signals before entering.