DCMSHRIRAM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.7
| Stock Code | DCMSHRIRAM | Market Cap | 16,505 Cr. | Current Price | 1,059 ₹ | High / Low | 1,502 ₹ |
| Stock P/E | 19.3 | Book Value | 494 ₹ | Dividend Yield | 0.85 % | ROCE | 11.5 % |
| ROE | 11.6 % | Face Value | 2.00 ₹ | DMA 50 | 1,093 ₹ | DMA 200 | 1,141 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | 0.24 % | PAT Qtr | 346 Cr. | PAT Prev Qtr | 237 Cr. |
| RSI | 45.4 | MACD | -22.4 | Volume | 50,034 | Avg Vol 1Wk | 46,510 |
| Low price | 945 ₹ | High price | 1,502 ₹ | PEG Ratio | -6.60 | Debt to equity | 0.37 |
| 52w Index | 20.4 % | Qtr Profit Var | 98.1 % | EPS | 53.7 ₹ | Industry PE | 18.9 |
DCM Shriram shows moderate fundamentals with fair ROCE and ROE, reasonable P/E ratio, and low debt-to-equity. The company has posted strong quarterly profit growth, but negative PEG ratio, weak momentum indicators, and trading below its 200 DMA raise caution. Technically, RSI at 45.4 and negative MACD suggest bearish to neutral momentum. It is a cautious candidate for swing trading with limited upside potential.
💡 Optimal Entry Price: Around 1,030–1,050 ₹ (near support levels close to DMA 50).
📈 Exit Strategy: If already holding, consider booking profits near 1,120–1,150 ₹ or exit if price falls below 1,000 ₹ (support zone).
✅ Positive
- 📈 Reasonable P/E ratio of 19.3 compared to industry average of 18.9.
- 💰 Low debt-to-equity ratio of 0.37 ensures financial stability.
- 📊 Strong quarterly PAT growth from 237 Cr. to 346 Cr. (+98.1%).
- 📉 EPS at 53.7 ₹ provides a solid earnings base.
⚠️ Limitation
- 📉 Weak ROCE at 11.5% and ROE at 11.6% indicate limited efficiency.
- 📉 Negative PEG ratio (-6.60) suggests poor valuation relative to growth.
- 📉 Trading below DMA 200, indicating bearish longer-term trend.
📰 Company Negative News
- 📉 Slight decline in FII holding (-0.01%) shows reduced foreign investor confidence.
- 📉 Momentum indicators (RSI and MACD) suggest weak technical strength.
🌟 Company Positive News
- 📈 Increase in DII holding (+0.24%) signals domestic institutional support.
- 📊 Strong quarterly profit growth boosts investor sentiment.
🏭 Industry
- 📊 Industry P/E at 18.9, close to DCM Shriram’s 19.3, suggesting sector is fairly valued.
- 📈 Chemicals and agribusiness industry remains essential but cyclical in nature.
📌 Conclusion
DCM Shriram presents a cautious swing trade opportunity. Strong profit growth and reasonable valuation are positives, but weak efficiency metrics, bearish technicals, and negative PEG ratio limit upside. Entry is favorable near 1,030–1,050 ₹, with profit booking advised around 1,120–1,150 ₹. Risk management is essential due to earnings volatility and weak momentum.