DCMSHRIRAM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.7
| Stock Code | DCMSHRIRAM | Market Cap | 19,142 Cr. | Current Price | 1,228 ₹ | High / Low | 1,502 ₹ |
| Stock P/E | 28.3 | Book Value | 464 ₹ | Dividend Yield | 0.73 % | ROCE | 10.8 % |
| ROE | 8.07 % | Face Value | 2.00 ₹ | DMA 50 | 1,139 ₹ | DMA 200 | 1,160 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | 0.24 % | PAT Qtr | 237 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 64.0 | MACD | 28.2 | Volume | 4,67,770 | Avg Vol 1Wk | 1,38,306 |
| Low price | 945 ₹ | High price | 1,502 ₹ | PEG Ratio | -1.50 | Debt to equity | 0.30 |
| 52w Index | 50.7 % | Qtr Profit Var | -4.77 % | EPS | 41.1 ₹ | Industry PE | 27.1 |
Analysis: DCM Shriram (DCMSHRIRAM) shows moderate fundamentals. Current price (1,228 ₹) is above both DMA 50 (1,139 ₹) and DMA 200 (1,160 ₹), indicating short-term bullishness. RSI at 64.0 suggests mildly overbought conditions, while MACD (28.2) supports positive momentum. ROCE (10.8%) and ROE (8.07%) are relatively weak compared to peers. Quarterly PAT improved (237 Cr. vs 168 Cr.), but profit variation (-4.77%) raises caution. Valuation is slightly stretched with P/E of 28.3 compared to industry PE of 27.1, and PEG ratio (-1.50) highlights growth concerns. Debt-to-equity ratio of 0.30 is manageable.
Optimal Entry Price: Around 1,180–1,200 ₹ (near DMA support).
Exit Strategy if Holding: Consider booking profits near 1,280–1,300 ₹ unless momentum sustains above 1,320 ₹ resistance.
✅ Positive
- Quarterly PAT growth (237 Cr. vs 168 Cr.) shows improvement.
- EPS of 41.1 ₹ supports valuation strength.
- DII holdings increased (+0.24%), showing domestic investor confidence.
- Stock trading above DMA 50 and DMA 200 indicates short-term bullish trend.
⚠️ Limitation
- Weak ROCE (10.8%) and ROE (8.07%) reflect inefficiency.
- Quarterly profit variation (-4.77%) raises caution.
- FII holdings decreased (-0.01%), showing reduced foreign interest.
- PEG ratio (-1.50) suggests poor growth prospects.
📰 Company Negative News
- No major negative news reported, but weak efficiency metrics and profit variation are concerns.
🌟 Company Positive News
- Quarterly PAT growth supports investor sentiment.
- Domestic institutional investors increased their stake.
🏭 Industry
- Industry P/E at 27.1 suggests DCM Shriram trades at a slight premium.
- Chemicals and agribusiness sector remains cyclical but essential for long-term demand.
📌 Conclusion
DCM Shriram is a moderate candidate for swing trading. Entry around 1,180–1,200 ₹ offers a safer risk-reward setup, while exit near 1,280–1,300 ₹ is advisable unless momentum sustains above 1,320 ₹. Strong PAT growth and DII support are positives, but weak efficiency metrics and growth concerns warrant cautious optimism.
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