DMART - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | DMART | Market Cap | 2,48,558 Cr. | Current Price | 3,819 ₹ | High / Low | 4,950 ₹ |
| Stock P/E | 79.7 | Book Value | 366 ₹ | Dividend Yield | 0.00 % | ROCE | 18.4 % |
| ROE | 14.0 % | Face Value | 10.0 ₹ | DMA 50 | 3,826 ₹ | DMA 200 | 4,058 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | -0.19 % | PAT Qtr | 923 Cr. | PAT Prev Qtr | 747 Cr. |
| RSI | 55.8 | MACD | -23.5 | Volume | 2,78,734 | Avg Vol 1Wk | 3,85,279 |
| Low price | 3,337 ₹ | High price | 4,950 ₹ | PEG Ratio | 3.67 | Debt to equity | 0.06 |
| 52w Index | 29.9 % | Qtr Profit Var | 17.6 % | EPS | 47.9 ₹ | Industry PE | 40.7 |
📊 DMART shows moderate potential for swing trading. Current price (₹3,819) is close to its 50 DMA (₹3,826) but below the 200 DMA (₹4,058), indicating mild weakness. RSI at 55.8 reflects neutral momentum, while MACD (-23.5) suggests bearish undertone. Valuations are stretched with a P/E of 79.7 compared to industry average of 40.7, though quarterly profit growth remains healthy.
💡 Optimal Entry Price: Around ₹3,700–3,750, near short-term support.
💡 Exit Strategy: If already holding, consider profit booking near ₹4,200–4,300, or exit if price falls below ₹3,650 with strong volume.
Positive
- Strong quarterly profit growth (17.6%) with PAT rising from ₹747 Cr. to ₹923 Cr.
- Low debt-to-equity ratio (0.06) ensures financial stability.
- High market cap (₹2,48,558 Cr.) reflects strong brand presence.
- EPS at ₹47.9 shows consistent earnings power.
Limitation
- High P/E (79.7) compared to industry average (40.7).
- No dividend yield, limiting investor returns.
- MACD negative, showing weak short-term momentum.
- Both FII (-0.02%) and DII (-0.19%) holdings declined.
Company Negative News
- No major negative news reported, but valuation concerns remain.
Company Positive News
- Strong quarterly profit growth and rising PAT.
- Stable financial structure with minimal debt.
Industry
- Retail sector trading at PE ~40.7, much lower than DMART’s valuation.
- Industry outlook remains positive with steady demand growth.
Conclusion
⚖️ DMART is fundamentally strong but overvalued relative to peers. It can be considered for swing trading with cautious entry near ₹3,700–3,750 and profit booking around ₹4,200–4,300. Risk management is crucial due to stretched valuations and weak technical momentum.