DCMSHRIRAM - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.1

📊 Analysis Summary

DCM Shriram is currently in a strong technical uptrend, supported by bullish momentum indicators and price action above key moving averages. While the fundamentals are moderate and valuation is slightly stretched, the stock’s setup favors a short-term swing trade, especially if volume strengthens.

🔍 Technical Indicators

RSI (63.8): Bullish — approaching overbought, but still in a favorable zone.

MACD (+53.4): Strongly positive — confirms upward momentum.

Price vs DMA

Current Price (₹1,422) is above 50 DMA (₹1,265) and 200 DMA (₹1,130) — confirms bullish trend.

Volume: Below average — needs improvement for stronger conviction.

📈 Fundamental Snapshot

P/E (35.9) vs Industry PE (24.9): Overvalued — growth expectations are high.

PEG Ratio (-2.04): Negative — suggests inconsistent or declining growth.

ROE (8.66%) & ROCE (11.4%): Moderate — not exceptional.

EPS (₹39.6) vs Price (₹1,422): Slightly stretched valuation.

Qtr Profit Growth (+13.0%): Positive — earnings momentum is improving.

FII & DII Holding ↑: Mild institutional buying — supportive.

Debt to Equity (0.36): Moderate — manageable leverage.

Dividend Yield (0.63%): Modest — not a key swing factor.

✅ Entry Strategy (If Not Holding)

Optimal Entry Price: ₹1,390–₹1,410 range, ideally on a minor pullback.

Confirm entry with RSI holding above 60 and MACD remaining positive.

Look for volume pickup and price stability above 50 DMA.

🚪 Exit Strategy (If Already Holding)

Exit near ₹1,490–₹1,500, close to recent high and resistance zone.

If price drops below ₹1,370, consider stop-loss at ₹1,340 to protect gains.

⚖️ Final Verdict

DCMSHRIRAM is a technically strong, moderately valued stock with improving earnings and institutional support. It offers a good swing trade opportunity with clear upside potential and manageable risk.

Edit in a page