DMART - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | DMART | Market Cap | 2,47,841 Cr. | Current Price | 3,808 ₹ | High / Low | 4,950 ₹ |
| Stock P/E | 79.5 | Book Value | 366 ₹ | Dividend Yield | 0.00 % | ROCE | 18.4 % |
| ROE | 14.0 % | Face Value | 10.0 ₹ | DMA 50 | 3,859 ₹ | DMA 200 | 4,012 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | -0.19 % | PAT Qtr | 923 Cr. | PAT Prev Qtr | 747 Cr. |
| RSI | 45.8 | MACD | -2.44 | Volume | 4,40,018 | Avg Vol 1Wk | 5,01,785 |
| Low price | 3,529 ₹ | High price | 4,950 ₹ | PEG Ratio | 3.66 | Debt to equity | 0.06 |
| 52w Index | 19.7 % | Qtr Profit Var | 17.6 % | EPS | 47.9 ₹ | Industry PE | 38.3 |
📊 The stock DMART shows moderate potential for swing trading. Current price (₹3,808) is slightly below 50 DMA (₹3,859) and 200 DMA (₹4,012), indicating weak momentum. RSI at 45.8 is neutral, while MACD is slightly negative (-2.44), suggesting consolidation. Valuation is stretched with P/E of 79.5 compared to industry average of 38.3, and PEG ratio of 3.66 indicates overvaluation relative to growth. Volume is slightly below average, showing limited participation despite recent profit growth.
💡 Optimal Entry Price: Around ₹3,700–3,750 if price consolidates near support.
📉 Exit Strategy (if already holding): Consider exiting near ₹3,900–4,000 resistance zone unless strong breakout occurs.
✅ Positive
- Quarterly PAT improved from ₹747 Cr. to ₹923 Cr. (+17.6%).
- Strong ROCE (18.4%) and ROE (14.0%) indicate efficient capital use.
- Debt-to-equity ratio is low (0.06), showing financial stability.
⚠️ Limitation
- High P/E (79.5) compared to industry average (38.3).
- No dividend yield, limiting investor returns.
- Price below DMA levels indicates weak technical momentum.
📉 Company Negative News
- FII holding decreased (-0.02%), showing reduced foreign investor confidence.
- DII holding decreased (-0.19%), showing reduced domestic institutional support.
📈 Company Positive News
- Quarterly profit growth (+17.6%) shows improving performance.
- EPS of ₹47.9 reflects consistent earnings power.
🏭 Industry
- Industry P/E at 38.3 shows peers trade at lower valuations.
- Retail sector remains strong with long-term growth potential.
🔎 Conclusion
DMART is fundamentally strong but currently overvalued and showing weak technical momentum. It can be considered for swing trading with entry near ₹3,700–3,750 and exit near ₹3,900–4,000. Caution is advised due to stretched valuations and reduced institutional participation.