DMART - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.2
| Stock Code | DMART | Market Cap | 2,80,459 Cr. | Current Price | 4,300 ₹ | High / Low | 4,950 ₹ |
| Stock P/E | 87.0 | Book Value | 391 ₹ | Dividend Yield | 0.00 % | ROCE | 17.5 % |
| ROE | 13.5 % | Face Value | 10.0 ₹ | DMA 50 | 4,187 ₹ | DMA 200 | 4,121 ₹ |
| Chg in FII Hold | 0.29 % | Chg in DII Hold | -0.06 % | PAT Qtr | 725 Cr. | PAT Prev Qtr | 923 Cr. |
| RSI | 58.3 | MACD | -4.85 | Volume | 17,39,842 | Avg Vol 1Wk | 9,01,451 |
| Low price | 3,529 ₹ | High price | 4,950 ₹ | PEG Ratio | 10.7 | Debt to equity | 0.09 |
| 52w Index | 54.3 % | Qtr Profit Var | 16.9 % | EPS | 49.4 ₹ | Industry PE | 33.7 |
DMART shows moderate potential for swing trading. The valuation is stretched with a P/E of 87.0 compared to the industry average of 33.7, and the PEG ratio of 10.7 suggests growth is not keeping pace with valuation. Fundamentals are stable with ROCE (17.5%) and ROE (13.5%), while debt-to-equity (0.09) is very low, reflecting strong financial health. Technical indicators are mixed: RSI at 58.3 indicates mild bullishness, but MACD at -4.85 shows bearish divergence. The stock is trading above both 50 DMA (4,187 ₹) and 200 DMA (4,121 ₹), showing strength. PAT declined sequentially (725 Cr vs 923 Cr), raising short-term concerns, but long-term fundamentals remain intact.
🔑 Optimal Entry Price: 4,200–4,250 ₹ (near DMA support).
📤 Exit Strategy if Holding: Consider exiting near 4,850–4,900 ₹ resistance unless momentum strengthens.
✅ Positive
- 📈 Strong ROCE and ROE indicate efficient capital use.
- 💰 Very low debt-to-equity ratio (0.09) ensures financial stability.
- 📊 FII holdings increased (+0.29%), showing foreign investor confidence.
- 📈 Stock trading above DMA levels shows technical strength.
⚠️ Limitation
- 📉 Very high P/E ratio compared to industry peers.
- 📊 PEG ratio (10.7) suggests poor valuation relative to growth.
- 📉 Dividend yield is negligible (0.00%).
- 📉 MACD shows bearish divergence despite RSI strength.
📰 Company Negative News
- 📉 Sequential decline in quarterly PAT (725 Cr vs 923 Cr).
- ⚠️ Overvaluation risk due to stretched multiples.
- 📉 DII holdings decreased (-0.06%), showing reduced domestic confidence.
🌟 Company Positive News
- 📈 EPS at 49.4 ₹ indicates solid earnings base.
- 📊 Strong fundamentals with low debt and stable ROCE/ROE.
- 📉 FII confidence with increased stake.
🏭 Industry
- 📊 Industry P/E at 33.7, much lower than DMART, showing sector is moderately valued.
- 📈 Retail sector benefits from consistent consumer demand.
- ⚠️ Valuation gap may limit upside compared to peers.
📌 Conclusion
DMART is a moderately strong swing trade candidate. Entry is best near 4,200–4,250 ₹ with cautious exit around 4,850–4,900 ₹. Fundamentals are stable and debt-free, but high valuation and mixed technicals limit short-term upside. Suitable for disciplined traders with strict stop-loss management.