DMART - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.3
| Stock Code | DMART | Market Cap | 2,84,950 Cr. | Current Price | 4,374 ₹ | High / Low | 4,950 ₹ |
| Stock P/E | 88.4 | Book Value | 391 ₹ | Dividend Yield | 0.00 % | ROCE | 17.5 % |
| ROE | 13.5 % | Face Value | 10.0 ₹ | DMA 50 | 4,218 ₹ | DMA 200 | 4,093 ₹ |
| Chg in FII Hold | 0.29 % | Chg in DII Hold | -0.06 % | PAT Qtr | 725 Cr. | PAT Prev Qtr | 923 Cr. |
| RSI | 50.7 | MACD | 119 | Volume | 14,31,067 | Avg Vol 1Wk | 6,87,012 |
| Low price | 3,529 ₹ | High price | 4,950 ₹ | PEG Ratio | 10.9 | Debt to equity | 0.09 |
| 52w Index | 59.5 % | Qtr Profit Var | 16.9 % | EPS | 49.4 ₹ | Industry PE | 46.6 |
Analysis: DMART trades at ₹4,374, above both 50 DMA (₹4,218) and 200 DMA (₹4,093), showing strong technical support. RSI at 50.7 is neutral, while MACD is positive, suggesting bullish momentum. Fundamentals are moderate with ROCE at 17.5% and ROE at 13.5%. Valuation is stretched (P/E 88.4 vs industry 46.6), making it expensive relative to peers. Quarterly profit declined (₹725 Cr vs ₹923 Cr), but overall 52-week performance (+59.5%) remains strong. PEG ratio of 10.9 indicates costly growth expectations, though debt-to-equity at 0.09 shows financial stability.
Optimal Entry: Entry is favorable near ₹4,250–4,300, closer to support levels.
Exit Strategy: If already holding, consider exiting near ₹4,600–4,700 unless momentum continues strongly.
✅ Positive
- Trading above both 50 DMA and 200 DMA, showing bullish trend.
- Strong 52-week performance (+59.5%).
- FII holdings increased (+0.29%), showing foreign investor confidence.
- Debt-to-equity at 0.09 indicates financial stability.
⚠️ Limitation
- High valuation (P/E 88.4 vs industry 46.6).
- PEG ratio of 10.9 suggests expensive growth expectations.
- Dividend yield is 0.00%, offering no income support.
📉 Company Negative News
- Quarterly profit fell from ₹923 Cr to ₹725 Cr.
- DII holdings decreased (-0.06%), showing reduced domestic institutional interest.
📈 Company Positive News
- EPS of ₹49.4 supports earnings strength.
- Strong long-term momentum with 52-week index at 59.5%.
- Positive MACD indicates short-term bullish momentum.
🏭 Industry
- Industry P/E is 46.6, much lower than DMART’s 88.4.
- Retail sector shows steady demand but valuations are more moderate compared to DMART.
📝 Conclusion
DMART is technically strong but overvalued, making it a moderate swing trade candidate. Entry near ₹4,250–4,300 offers better risk-reward. Holders can target exits around ₹4,600–4,700 unless momentum continues. Caution is advised due to high valuation and recent profit decline, but short-term trend remains positive.