⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DCMSHRIRAM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.3
| Stock Code | DCMSHRIRAM | Market Cap | 18,189 Cr. | Current Price | 1,168 ₹ | High / Low | 1,502 ₹ |
| Stock P/E | 26.9 | Book Value | 464 ₹ | Dividend Yield | 0.77 % | ROCE | 10.8 % |
| ROE | 8.07 % | Face Value | 2.00 ₹ | DMA 50 | 1,193 ₹ | DMA 200 | 1,195 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.07 % | PAT Qtr | 237 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 48.1 | MACD | -15.2 | Volume | 29,463 | Avg Vol 1Wk | 37,639 |
| Low price | 903 ₹ | High price | 1,502 ₹ | PEG Ratio | -1.42 | Debt to equity | 0.30 |
| 52w Index | 44.3 % | Qtr Profit Var | -4.77 % | EPS | 41.1 ₹ | Industry PE | 22.7 |
📊 DCM Shriram shows stable fundamentals but weak technical momentum and modest returns. It is a moderate candidate for swing trading, suitable for cautious positioning near support levels.
✅ Optimal Entry Price: 1,150–1,160 ₹ (near 50 DMA support)
🚪 Exit Strategy if Holding: Consider exiting near 1,200–1,220 ₹ (close to 200 DMA resistance) or if RSI moves above 55.
Positive
- 💡 EPS of 41.1 ₹ supports earnings strength.
- 📈 PAT improved from 168 Cr. to 237 Cr., showing sequential growth.
- 🏦 Debt-to-equity ratio of 0.30 indicates manageable leverage.
- 💰 Dividend yield of 0.77% adds investor confidence.
- 📊 Large market cap of 18,189 Cr. ensures liquidity.
Limitation
- ⚠️ ROCE (10.8%) and ROE (8.07%) are relatively weak compared to peers.
- 📉 MACD (-15.2) signals bearish momentum.
- 🔻 Quarterly profit variation (-4.77%) shows earnings pressure.
- 📊 PEG ratio (-1.42) suggests poor valuation relative to growth.
Company Negative News
- 📉 Weak return ratios (ROCE and ROE) compared to industry standards.
- 📊 Decline in quarterly profit variation highlights short-term weakness.
Company Positive News
- 📈 Sequential PAT growth from 168 Cr. to 237 Cr. indicates operational improvement.
- 📊 Slight increase in FII (+0.01%) and DII (+0.07%) holdings shows marginal institutional support.
Industry
- 🏭 Industry P/E at 22.7 is lower than DCM Shriram’s 26.9, suggesting mild overvaluation.
- 📈 Chemicals and agribusiness sector remains essential, supported by demand in fertilizers and industrial chemicals.
Conclusion
🔎 DCM Shriram is fundamentally stable but technically weak in the short term. Swing traders may enter near 1,150–1,160 ₹ and exit near 1,200–1,220 ₹. Monitoring RSI and MACD is crucial, as momentum indicators suggest limited upside unless a reversal occurs.